I always have serious doubt about these FII / DII figures published by NSE/BSE everyday. These are provisional figures anyway and the actual figures get changed sometimes when SEBI publishes it next day at around 5 p.m. Moreover, there is a huge confusion in my mind about how many FIIs registered in India are real FIIs... Won't be surprised if most of them are Mauritius based firms with actual source of fund being India itself. So in my opinion drawing any inference based on these figures may not be right.
General Trading Chat
- Thread starter timepass
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yes PT Bhai, I also noticed the same thing. FII selling has been continuing even on such a bullish day. 
In banking sector, BankBaroda and Ucobank were top gainers. But BankBaroda has seen good long buildup, whereas in case of Ucobank, it was just short covering which caused the price rise.
Same way in the Metal Sector, Jindalstel has seen New Longs, where as NMDC is up based on only short covering.
Can we say that the counters which are up based on New Longs are comparatively stronger then the counters which are up based on only short covering ? What are your views on this aspect ? Please share.
Thanks a lot
In banking sector, BankBaroda and Ucobank were top gainers. But BankBaroda has seen good long buildup, whereas in case of Ucobank, it was just short covering which caused the price rise.
Same way in the Metal Sector, Jindalstel has seen New Longs, where as NMDC is up based on only short covering.
Can we say that the counters which are up based on New Longs are comparatively stronger then the counters which are up based on only short covering ? What are your views on this aspect ? Please share.
Thanks a lot
As per my understanding of Indian market, if someone has 100 shares, he sells a part of them, say 50, in down market and buys them back again at a lower price. In effect, his final portfolio in terms of # of shares remains the same. If I don't have any share, I can't short them for more than one day in India. I always doubt when "short covering" as a term is used so extensively in Indian context.
On a separate note, many counters were up on very low volumes today.
How does short covering exactly work here when regulator doesn't allow shorting in cash segment?
As per my understanding of Indian market, if someone has 100 shares, he sells a part of them, say 50, in down market and buys them back again at a lower price. In effect, his final portfolio in terms of # of shares remains the same. If I don't have any share, I can't short them for more than one day in India. I always doubt when "short covering" as a term is used so extensively in Indian context.
On a separate note, many counters were up on very low volumes today.
As per my understanding of Indian market, if someone has 100 shares, he sells a part of them, say 50, in down market and buys them back again at a lower price. In effect, his final portfolio in terms of # of shares remains the same. If I don't have any share, I can't short them for more than one day in India. I always doubt when "short covering" as a term is used so extensively in Indian context.
On a separate note, many counters were up on very low volumes today.
Your second observation regarding Low Volume Rally is also correct. The volume was low in most counters yesterday, compared with the previous days. So that does creates some doubts about the real health of the rally.
Regards
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