The Crash( 17.5.2006) and FII activities since then

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karthikmarar

Well-Known Member
#71
Czar said:
Possible, but they gave chance for people to exit...If we cannot book then they surely did...Out of XX no. of FII they too are in the dog race...so before some others started the trigger they did & then others joined the race to book, but India is definately a hope & they live on hope of a better future so we hang on... I read this joke somewhere:

Indian growth story is Intact. The FII's took away the growth & left the Indians with the story...
Baron

Please permit me to make a little change to your joke.

Indian growth story is Intact. The FII's took away the growth & left the Indians with the sob story.... :D

regards
 
C

Czar

Guest
#72
lol... by the way I came across this post on m.control by mr.herry, I think it fits in this thread...

Yes that is what I feel after reading this excellent article. Any one can suggest me how to use this information ???
-------------






Who Is playing with our Money?
Dear Friends,

I would like to tell something to all of the investors
who have made heavy losses during last few days.


It is talked about fundamentals, liquidity, FII Buying ,
FII selling, Results, EPS, And many many matters to
justify fall or upward move of the sensex. I will give
you some figures which itself are the facts that smart
people with high nethworth are playing with all of you.

I will give you 7 examples with todays data to prove my
statement. I have choosen those stocks which are normally
traded widely by day traders.
__________________________________
Dabur :

I am sure many of you must have either traded in Dabur
or having positions in it. Today was a black day for dabur.
It closed at 125.70 which was 6.82 % lower than previous day.
Now just check who were sellors in this stock ? How many
of you earned money in short selling ? Be serious and ask
yourself honestly. I am sure none of you could have earned
money in this boom of 4985.47 point's rally ( Rally started with
7685.64 and ended with 12671.11 ) If you compare your gain
with market capitalisation or say % of increase in Sensex,
I am sure, you will feel like a FOOL. Why ? below is the example.

Dabour Fall 6.82 % in spot market. Its Open Interest increased by
10.85%. Any spark ? Those who can stay invested in future market
with just investments equal to margin amount can sell in spot and
smartly build positions in derivative market. Now Note down my
words.Before end of June expiry, Dabur will cross 150 levels. Those
smart people having high nethworth will buy in the SPOT and gradually
off load positions in Future!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!. If you do
not believe,just track any single stock and check it and match it with
deliverable positions at BSE , NSE for exact confirming the track.
__________________________________

Hero Honda :
-----------------
Hero Honda closed 720 ,,,, 6.53 % down compare to pre day closing.
Open Interest went up by 14.51 %. Same case as above. Stock has just
changed the pocket..!!!!!!!!!!
__________________________________

Infosys :
_______

Closed 2830, which is 2.75 % down. Open Interest increased by 12.26 %
_________________________________

Maruti :

Closed at 683.60 which is 5.72 % down from pre. day closing.
Open Interest Increased by 5.72 %
____________________________________________________________

National Alluminium :

Closed 214 which is 3.82 % lower than previous day close.
Open interest went up by 12.97 %
_____________________________________________________________

TCS :

Again same story. Closed 4.13 % lower than earlier close. ( 1709 )
Open interest went up by 11.80 %

______________________________________________________________

Wipro :

Closed at 444.70,,,, lower by 1.11 %
OI build up 8.83 %................................!!!!!

______________________________________________________________

I have just given you simple example. Little complex can be selling one stock
heavily and buying another. If we take more and more complex method of
cheating people smartly, please check each rally and corrections has span
of less than 30 days. I am not talking about initial stage where FIIS were
building their positions so that later they can dominate the market and
particular stock. Initially market went up from 7656 to 9442. Then after
check each wave :
9442 To 9020
9020 To 9689
9689 To 9158
9158 To 11930
11930 To 11008

11008 To 12671
12671 To 9826 ( Cool down )
9826 To 11050
11050 To Ongoing...............Probably .......9590
Now just check dates, you will get the span of rally and correction.
It seems that cheaters are in hurry, tremendus hurry to mope as
much money as possible within earliest possible time.
_____________________________________________________________

It will sound unfair but let me tell you that the way FIIS are allowed to
trade in Indian market, you can not think such trading being permitted
in a firm country like China.If FIIS are sellors, as we heard daily, and all of
you are blindly believing...!!!!!!! correct?? but check their byiing and selling
figures which are available on the CNBC portal. Now my question is: If Fiis
are Net selors during the entire month of May then why they heavily buy
also ? If they intend to off load their holding, why they are buying and what
they are buying ? It is very interesting. Just check Total Buy , Total Sell and
Net amount.......!!!!!!!!!!!!!!!!!! You will get the things.............!!!!!!!!!!!!!!!!!!!!!!

Untill our government form some norms for the entry and way of exit for
FIIS , this problem can not be solved. None of the entity can be allowed to
behave iresponsibly in any country.It is possible in India.
 

pkjha30

Well-Known Member
#73
Czar said:
lol... by the way I came across this post on m.control by mr.herry, I think it fits in this thread...

__ If FIIS are sellors, as we heard daily, and all of
you are blindly believing...!!!!!!! correct?? but check their byiing and selling
figures which are available on the CNBC portal. Now my question is: If Fiis
are Net selors during the entire month of May then why they heavily buy
also ? If they intend to off load their holding, why they are buying and what
they are buying ? It is very interesting. Just check Total Buy , Total Sell and
Net amount.......!!!!!!!!!!!!!!!!!! You will get the things.............!!!!!!!!!!!!!!!!!!!!!!

Untill our government form some norms for the entry and way of exit for
FIIS , this problem can not be solved. None of the entity can be allowed to
behave iresponsibly in any country.It is possible in India.
Czar
Point well illustrated. Thanks for that
It has also been made by me in earlier posts.Check this.
The second point is if India is down in the dumps then why FII buy activity is seen.It is part of hedging against any surprise upside.

Third possiblity is of cource sectoral rotation.

Lastly given the total amount of money invested in FII segment, why all are not taking their money out. The current outflow looks very large but it does not constitute a respectable percentage of FII holding.

I suspect that they are still holding and if they were all to pull out , leave alone bulls ,even our bears will also be made mincemeet for sure. Indian market will get into global isolation on catastrophic outflow of money. That situation is not seen at all. Many of us would remember Brazil and Argentina.

Now that 10500 is gone , it is likely that market will move in a range of 9500-11500. A period of consolidation will be there.
I am not all that versed with open interest. Perhaps you could throw some light on this. It seem negatively correlated. Could you throw some more light on that?

Pankaj:)
 

pkjha30

Well-Known Member
#74
karthikmarar said:
Baron

Please permit me to make a little change to your joke.

Indian growth story is Intact. The FII's took away the growth & left the Indians with the sob story.... :D

regards
Hi Karthik
Infact, it will be mob story.:D

Pankaj:)
 
#76
Hi Pankaj!

As earlier I guessed we will test 9600 levels again, I think yes today we can test this. I think the mood in this forum is going too bad with pessimism all around. These are all phases, extreme pessimism to optimism. For me ideal will be that market closes in green again, if that happens I think we can see a sharp rally with so much short positions on and nifty discount of 100 points, as all persons seem short to me. But market does not go ideal way. I was still buying in small lots but will buy again aggressively if market goes down 10% again. Your views are appreciated. I will look to buy hindustan zinc down 15% yesterday.
 
#77
Folks

Most would have read about Nomura Secs (Equity Research arm) saying that India is overvalued... they think Sensex true value is around 7500

I have a question , and a possible answer :
Q: Why are they saying this now, and not when the market crossed 7000 on its way up (Their Investment Bkg arm : Nomura Fund entered India at around 8000 !)

Possible Answer : Nomura says FIIs have been 'cheated' by unduly optimistic earnings estimates. Do they refer to last quarter disappointments such as TISCO /SBI /Dr. Reddys ?

Views?

AGILENT
 
C

Czar

Guest
#78
@karthik: lol the joke's all yours mate...

@gandharvashu: short covering may trigger a short rally but why o why are we feeling left out that we attempt to buy even 10% from here.. why is it difficult to be patient... look at fii figures of y'day they were net seller in nifty future...beats me but they are still selling with a 100 pt discount ???
 

pkjha30

Well-Known Member
#79
Agilent said:
Folks

Most would have read about Nomura Secs (Equity Research arm) saying that India is overvalued... they think Sensex true value is around 7500

I have a question , and a possible answer :
Q: Why are they saying this now, and not when the market crossed 7000 on its way up (Their Investment Bkg arm : Nomura Fund entered India at around 8000 !)

Possible Answer : Nomura says FIIs have been 'cheated' by unduly optimistic earnings estimates. Do they refer to last quarter disappointments such as TISCO /SBI /Dr. Reddys ?

Views?

AGILENT
Does it mean that Japanese have become master blaster in India. Nomura is the main Fund which is selling as per report. Their buying is nil. This supports the arguments given by Jubak. BOJ is sucking liquidity out of system and Nomura is forced to rerate risk perception for their investors. My question is .. are they hedge fund or investment fund..?? Looks like first option.Japanese economy is retuning to inflation and posibility if interest rate hike is expected. So there is every chance that Nomura will fly. The only question is should they or such of their ilks be allowed to land againg here, I mean hedge fund.

On earning expectations, it is unnecesarily hyped up. Should we believe tha analyst's estimates or the company forecast. None of the above mentioned company has given unduly high forecast. So who cheated?

I was trying to collate FII data and finger pointed to japanese..??
Truth...All will be in search and introspection mode if 7500 materialises not very far from here
Three cheers to Baron.:D
Pankaj:)
 

pkjha30

Well-Known Member
#80
Hi

Thw world market was in mild green. I thought FROGS will only croak. No its their masters. Nomura speaks. So world indices may not bring the relief rally.

But the question is how long will it continue. The value of paper it ultimately reflected by the real book value as on date. So go and check what is the fair value of your investment and if you determine that.It is for japanese mob to decide that. You have to believe in youself and the country and its growth prospects. If that is not there then papers you hold is nothing.This applies to both bulls and desi bears. Perhaps we will , by dint of self respect and hard work and good ploicies , rise to the strength which would allow us to dictate terms to others. No dictate is a wrong word. We may guide others as we are ancient civilisation as Amit Pointed out.

As agilent informed, Nomura feels that other FIIs also have been cheated. By whom... well Nomura himself. So there was this big news last year that japanese are willing to invest in India and FM was all over the places. May be end results are not yet seen. My guillotine info was only in that context. Understand Czar??

Let us not aniticipate the bottom and see what steps are taken to stem the fall of castle in the Air???( if there was any)

All over the world castles are built in the Air. So this is nothing new here.

We will wait for the first sign of FROGS croacking and track their activities.

Pankaj:)
 
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