We are approximately 450 points away from the lows. Can we rally more? Ofcourse we can. But let us look at the rally in a different perspective. Let us assume the institutions are playing this game. To induce a rally or a fall, buying or selling of equities is required. In August 2011, the earlier month, Nifty Futures made a fall of 600 points approximately from 5480 to 4840. For a fall of 600 points, FII have sold equities worth 12600 crore. On a same scale, if you consider this month, they got a rally of 440 points for a buy of 1300 crore.
Let us get a bit more micro. Consider the last 3 trading days. They have net sold 32K contracts worth 800 crore. They could get a rally of 140 points. Well, there are two ways to look at this. The FII are feeling quite left out of this rally or... they are just adding to their shorts at each of the higher levels. In any case it is evident that the rally is not induced by FII. So, now you can take your pick. You can start thinking that FII will chase this rally and we are going much higher or ... Be careful with your longs.
The roller coaster is about to resume its.... We are in for a rough ride for the next week or so.
Let us get a bit more micro. Consider the last 3 trading days. They have net sold 32K contracts worth 800 crore. They could get a rally of 140 points. Well, there are two ways to look at this. The FII are feeling quite left out of this rally or... they are just adding to their shorts at each of the higher levels. In any case it is evident that the rally is not induced by FII. So, now you can take your pick. You can start thinking that FII will chase this rally and we are going much higher or ... Be careful with your longs.
The roller coaster is about to resume its.... We are in for a rough ride for the next week or so.
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