Hi
Let us come to the beaten path again
FII s are net buyer on12.6.2006 as reported by NSE:-
FII trading activity on NSE and BSE in the Capital Market segment(In Rs. Crores)
Date--- Buy Value--- Sell Value ----
Net Value
12-Jun-2006--- 1516.65---- 1432.13----
84.52
And SEBI says
Daily Trends in FII Investments on 12-JUN-2006
Reporting Date --- Gross Purchases(Rs Crores) ---Gross Sales(Rs Crores)---
Net Investment (Rs Crores) ---- Net Investment US($) million at month exchange rate
12-JUN-2006 2106.30 1597.50
508.90 112.10
So FIIs are net buyer by 508 cr rupees. as per SEBI figure.
Daily Trends in FII Derivative Trades – June 12, 2006
BUY--SELL---OPEN INTEREST AT THE END OF THE DAY
Amt in Crores---Amt in Crores----Amt in Crores
INDEX FUTURES
1351.18--- --1408.95-----9595.76
INDEX OPTIONS
198.20---141.74---2189.74
STOCK FUTURES
493.93---259.59--- 9415.09
STOCK OPTIONS
14.64 ---0.00---106.12
Index futures , they are net seller but in mrest they are net buyers.
I think MFs would be net seller to the same extent as FIIs are buyers.
As noten in previous post global cues are extremely negative. Analysts are looking at the inflation data of US . employment rate, oil ptices and US deficit coupled with fed rate increases and predicts that money will move towards lesser risk instruments meaning Bonds . Liquidity will be out and emerging markets which was mainly liquidity driven will plummet even lower.
What will be next consequence. Any move up will be painful and slow. Every time indices move up selling will be there from those who are stuck at higher level thinking that market will move up.Such supply levels will exist at least at Four to five major levels starting from the period Nifty was last seen in the similar range ie. october or may be earlier.Such underground stream of supply of stocks will keep indices down for a fairly long time say three to six months. If global recession sets in then naturally market will be subdued on account of less liquidity.
Well thats it. Nifty/sensex will touch what nomura says it will. Then only FIIs will see valuations.
PE at 9-10 should be enticing enough for them. Till such time we have to enjoy
Stephan king's Nightmare on Dalal Street.
For investors, Time will be there when we will get value for money , till such time money should be intact.Keep monitoring you individual picks, their fundamentals etc.
Wait and watch the struggle from the sidelines.
Europe was splashed in red. USA may be no different. China was in green. Nikkei was also in green.
To end on an optimistic note, this month will be crucial. Investors have to leave behind worries of FED rate and Oil prices as stock market will only offer higher returns than any other instruments. So our wait for global cues continue Look out for FROGs for
Company specific details. As many of them will start hitting near 52 WK low.
Pankaj