Namaste - My Learning of Trading in Nifty

[crown]

FII and DII also have to go with the market flow. If they neglect it they will also be bankrupt. They can control it to some extent, but this some extent does what they want. It creates the move in their direction. This last phase of market when it was rangebound, was distribution of shares and accumulation of fresh positions and that was done by FII and DII at different times. What we can say is that market was settling down for a move either to upside of downside.
We cannot be hundred percent sure but we can trade what we see rather than what we think...

Is there any chance that there are two sections in FII/DII/Smart Money, fighting against each other?

Or they are always united in one direction?

 

[rajputz]

Is there any chance that there are two sections in FII/DII/Smart Money, fighting against each other?

Or they are always united in one direction?

In one direction

 

[crown]

In one direction

Ok
to conclude

Smart Money comprising FII/DII/Big Investors etc., is always united in one direction and they always play way ahead of the masses (general investor, traders, speculators, retail investors).

And because Smart Money is always in one direction, they have the similar/same concept of judging the market. Like the concept of FIIs, DIIs, and Big Investors has to be the same. But, it does not look true.

Is there anything, I am missing Rajput bhai?

 

[crown]

Ok
to conclude

Smart Money comprising FII/DII/Big Investors etc., is always united in one direction and they always play way ahead of the masses (general investor, traders, speculators, retail investors).

And because Smart Money is always in one direction, they have the similar/same concept of judging the market. Like the concept of FIIs, DIIs, and Big Investors has to be the same. But, it does not look true.

Is there anything, I am missing Rajput bhai?

Anyway, never mind..... what my point is

If Smart Money is always in one direction, there should not be contradictions in the actions among them.
Like, many times (or in other words, very frequently), it has been observed that while DIIs are selling FIIs are buying or vice-versa.
And, that clearly indicates the difference of opinion among Smart Money itself.
What does this indicate?

 

[rajputz]

Concept may be different...conclusion is same...They buy the right price not the right chart...

 

[crown]

Concept may be different...conclusion is same...They buy the right price not the right chart...

Thanks Rajput bhai

difference in concept is itself enough to conclude that there is difference of opinion among the Smart Money itself.

As regard to their buying at the right price, this is absolute truth and I am just trying to figure out, how they figure out the right price. And in that context only, I am trying to figure out the resistance and support levels.

 

[vijaybhaskar]

I beg all of you
please mujhe day trading sikha do

bas itna hee ki ho jaye ki kam se kam 1 trade to daily ka sahi jaye.


Everything seems easy, when I apply on the historical charts
but when I apply it in realtime trade, maximum of my trades are losing.

Like, in this thread, on the basis of weekly charts, I was able to conclude that Nifty is likely to go down after breach of 5400 and around the levels of 5460. Now, when I saw the daily charts, it is giving another picture which is totally contrary to the current situation. In daily chart, I see that Nifty has a flag break out, target of which is above 5500. Now, I really am pissed off what to do. Whether I should wait and go short above 5400 Or I should enter long now?

Kuchh samajh nahi aa raha
please help big brothers, my whole life depends upon this.

Day trading is risky but you can make money but have a stoploss target and trade, watch for the stocks which are higly volatile for the past 2 days and invest in them. Best method would be to short them when they reach high and buy them at lower levels. I would name ABAN offshore, UFLEX, bank stocks all these have a great variation from high to low on a daily basis.
Best would be trading NIFTY options buy both call and put options and before this "Please do paper trading" to get an idea or log on to moneybhai or rediffmoney for doing online trading without any investment.

Wish you good luck
Vijay Bhaskar

 

[crown]

Day trading is risky but you can make money but have a stoploss target and trade, watch for the stocks which are higly volatile for the past 2 days and invest in them. Best method would be to short them when they reach high and buy them at lower levels. I would name ABAN offshore, UFLEX, bank stocks all these have a great variation from high to low on a daily basis.
Best would be trading NIFTY options buy both call and put options and before this "Please do paper trading" to get an idea or log on to moneybhai or rediffmoney for doing online trading without any investment.

Wish you good luck
Vijay Bhaskar

Thanks bhai for your guidance.

 

[rajeabc]

Raj bhai

Does that mean FII/Big players/Smart Money is capable of deciding the price at its own beyond the fundamentals?

If yes, what are the chances of it being hundred percent accurate all the time?

Or

There are two sides of FII/Big Player/Smart Money, always playing against each other.

And

Is there anyway, beside technicals, to know/understand/find what are they up to?

Crown ,

That is the reason I always used "Majority" word in my posts below. When FII and other big investors work in a same direction , intentially / unintentially , then market moves in that direction.That is very obvious .

Now to the points can few(not Majority) of them inflate market to more/much more than fundamental values then Answer is NO. BUT they can play with low Mcap companies to take it to any high they want. Now look at the case of Harshad Mehta , Ketan Parikh etc... That is the reason why wise people advise to KEEP AWAY FROM PENNY STOCKS.

Also look at ABAN(Peak 4500+ , CMP=~850) , UNITECH(Peak 12000+ , CMP=~1200 ????) , EDUCOM(Peak 4500+ , CMP=~3000), SANRAA(Peak 10+ , CMP=~1) , CALS REF(Peak 15+ , CMP=~.30 ???)
These are the examples of cases where big money played in last bull market and they dumped these and now they have targeted new holy cows to play with.


Yes , you can know their moves without any Technical if you have Insiders there. That has very less chances so we try to follow their moves, with some lag, using Various Tools.

cheers

 

[SwingKing]

Is there any chance that there are two sections in FII/DII/Smart Money, fighting against each other?

Or they are always united in one direction?

In one direction

I will have to disagree with you guys on this.

FII's/DII's/Hedge Funds are never united. Look guys, this is Stock Market. One thing you need to understand is that Money attracts Money. If certain section of FII's are buying a stock, they need to buy from someone who holds the kind of supply this section of FII's need. Can retail ever supply that much? Well, let me say, they Can't. If FII's and rest of the Funds would be on the same side, who would sell? How would such huge OI positions be build up. You and me can never supply that kind of build up. Neither can we demand so much.

If every one was on the same side, why do fund managers of large funds have different performances? Statistically, only 5% of Fund managers beat the market. 30% give above average performance and the rest under perform the markets. The fact is we need to be on the right side of these winning funds. That should be our ultimate objective.

Tc