Thursday, August 07, 2008


Hmmm ,A little insight about FII behavior
This thing has literally been injected in to traders mind that FIIs are GOD
If they buy we go up if they sell we go down ,Dear friends thats not true
Yes FIIs hold importance too but not to that extent that Traders just try to follow them.
History has showed Fiis tend to sell more near lows and buy big at highs.

A recent example FIIs did no 4 digit buys at bottom
They bought 1600+ cr the day govt got majority and that was the wave 1 top:)
I am attaching a chart which shows you what buy sell happened from FIIs and MFs since that july 17th bottom which shows no considerable buys from them .The two green arrows shows 4 digits buys by FIIs on that particular day and those 2 days made respective tops.

I think its usually the OPERATORS ,LIC ,UTI etc who tend to enjoy this bottom buying
so called strong hands.
views welcome can write your views in comments


Unknown said...

fully agree wth u, i had also observed same thing.

Unknown said...

I entirely agree your views. this is the real thing please.

Rajat Budhiraja said...

well thz the one way looking at it ..if you think that july 17 was the bottom then your theory holds good.. otherwise if there is one more down wave pending then ..i think Fiis are smarter than us as they are not looking out for few days rally ...they are smart enough to sell their holdings on bear rallies..

mytour said...

same thing heard on the streets as in the aug series is operated by operators like lic and uti

Anonymous said...

Don't you think it's too small a time frame to draw such a generalisation, which in reality may be misleading? Of course, FIIs are not gods; they are merely entities with deep, deep pockets who can swallow you and me in one gulp. With the resources at your command, a larger study since 2003 or so would be in order, not least to prove how many billions FIIs have carried away as profits.

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