Comments on: A word of caution!

By: sagecapital

sagecapital — Wed, 21 Nov 2007 03:52:09 +0000

No significance -just an observation.You should not end of chasing “hot stocks” and burn your fingers!Most of these moves have been “news driven”or based on some “rumour”.
FIIs have been indeed selling for past few days.

By: anil bansal

anil bansal — Wed, 21 Nov 2007 03:34:25 +0000

I expect the FII’s to be selling rather than buying. The share holding pattern data will reveal in the near future provided they had holdings in these stocks. Thats their business and would book profits at these prices. I wonder what made the price rise so suddenly probably the public would be latching on to these for the momentum trade which you do recommend through this blog. Nothing unusual in this. The FII’s will buy back into these stocks when the bubble bursts or prices retract.
how does it make a difference if the market manipulator is an FII or an Indian? What is the significance of your observation.
I am more confused

By: sagecapital

sagecapital — Wed, 21 Nov 2007 03:26:19 +0000

Anil- You don’t find FIIs chasing Essar Oils and Essar Steels of the world.
Can you spot a pattern-all low value stocks are being pushed up at the same time? And that too 100%+ in a week’s time!
And I am not sure if MFs or insurance guys are buying these stocks for long term.
The locals not be able to match FIIs but many retail guys join the bandwagon when they see these giant moves!
You don’t have to be confused- you just have to follow your own strategy without worrying about what market is doing.

By: anil bansal

anil bansal — Wed, 21 Nov 2007 03:18:20 +0000

dear sage – I find your statement very interesting.
“FIIs are getting out and the local operator is getting in-this is what the market action is telling me.”
what signals did you base your observation on. Are these local operators old or new. if old were they not active earlier. can they match the financial might of the FII’s.
I am confused.