Markets in BUBBLE ZONE?
- Thread starter rajeshn2007
- Start date
A friend,who is managing funds of 2.50Crores on PM basis has sent following mail.BTW he is not interested in soliciting business & he refrains from posting in forums,to avoid controversies.He is neither gifted writer nor a jugglar,but he has knack of reading the pulse of mkt.
Dear Bharatbhai,
Last few weeks there is incessant selling by FIIs in stock futures. I have not calculated exact figure. But the open interest is at 55000 crores in stock futures where they are mostly short.
Just for a comparison in May 2006 the OI was 27000 cr approx. Off coarse in view of the index levels at almost double levels and addition of so many stocks in FNO the OI is still low as compared to those days.
But the pattern is somewhat similar in nature and this may continue for weeks or sometimes even a couple of months. But in my view wherever correction comes this time it could be as serious as May 2006.
You may want to caution your friends on this.
Regards,
Sanjay
Dear Bharatbhai,
Last few weeks there is incessant selling by FIIs in stock futures. I have not calculated exact figure. But the open interest is at 55000 crores in stock futures where they are mostly short.
Just for a comparison in May 2006 the OI was 27000 cr approx. Off coarse in view of the index levels at almost double levels and addition of so many stocks in FNO the OI is still low as compared to those days.
But the pattern is somewhat similar in nature and this may continue for weeks or sometimes even a couple of months. But in my view wherever correction comes this time it could be as serious as May 2006.
You may want to caution your friends on this.
Regards,
Sanjay
Hi Kalyan,
Do you think that the correction is about to come, as the bull run has been continuing from long time, and many ppls are awaiting for the correction of about 3000 to 5000 Points, at least this is the info we have heard- that the correction is likely to hit the market very soon!
And once the correction will happen all the penny which has increased like anything in last few months , weeks will come down to earth
What are your views, please post.
Regards,
Do you think that the correction is about to come, as the bull run has been continuing from long time, and many ppls are awaiting for the correction of about 3000 to 5000 Points, at least this is the info we have heard- that the correction is likely to hit the market very soon!
And once the correction will happen all the penny which has increased like anything in last few months , weeks will come down to earth
What are your views, please post.
Regards,
Kalyan is right. First we have to define what is a "bubble" and what is an "overbrought" zone. May be line of distinction is very thin and sometimes it may even be invisible. But I am happy to note that many members here are not over optimistic and are not in a mood to buy whatever names they hear. Glad to see that maturity.
Look at ADAG cos today, RNRL up 20% for the past few days, adlabs up 20%, REL - up 20%(bcos of rel power ipo).
all these stocks up , just because anil wants to become become no.1.
market cap game.
jindal, essar all want to move up in forbes list. they are driving up their own co stocks. just frenzied buying.
all these stocks up , just because anil wants to become become no.1.
market cap game.
jindal, essar all want to move up in forbes list. they are driving up their own co stocks. just frenzied buying.
Similar threads
-
fundamental analysis to forecast forex markets
- Started by ReggieFx
- Replies: 1
-
-
-
-
Putting the Power of Confluence to Work for Trading Markets- Part2- Started by Forextamil
- Replies: 0