Nifty Futures Trading

[S S]

There is a growing fierce hatred for FIIs amongst us......

Ashish Da,.... may be this is because one common error everyone commits.

We talk of rates.... in cash segment and in F&O.... but we never give it a thought, that lt's say,.... at a particular price, some number of lots were shorted of RIL futures, that brought the price of RIL Futures down.

Simulteniously, when the RIL cash price comes down, no one really bothers to co-relate the sell of number of shares in cash segment vis-a-vis the number of shares from the lots sold in F&O.

Everyone presumes that it may be 1:1

In reality, it is not.

Therefore, with less number of stocks, the cash segment could be managed, especially when the small players are getting worried and are opting to stay out..... and the most simple way of doing this all, is througn P-Notes, which allows one to borrow temperorily from someone else's holding.

And only FIIs have this facility, we all do NOT.

Cheers!
SS

 

[Sunil]

Sunil, our rule of shorting/longing only after second attempt when using camarilla is working fine....so goes the discovery. we shud tentatively freeze on this rule until the rule is violated. What say?

We'll try this out for one more week Nov 3 to 7 before freezing it. Grade 4 levels are good enough as they are with the trend - grade 3 levels are a bit dicey as they are contra-trend;
let's see this week's results.

Glad to have a company. Thank you new2sm - u have been very co-operative, encouraging & helpful to me right from my first week / initial days in this forum.

 

[uasish]

P-Note or Z-Note,they are Selling what they or (borrowed from somebody) HOLDS.

Arbitrager Sell / Buy Cash Mkt & take opposite position in Futures Buy / Sell.Leave them aside.

Somebody Selling at Cash Mkt can also Short in Future or vice versa Shorting in Future & Selling in Cash,that is what most HNI/FII/DII/OPERATOR does,becoz Cash being Underlying & Futures is that Underlying's Derivative.
Now who says i do not have that facility of Selling both in Cash & Derivative.Rather i do not have that financial capability,& all P-note etc are Selling in NSE ,all their trades are reflected HERE in our charts.No back door ,no behind the curtain ,no hiding Sir,all transperent in the Exchange itself.
Plz do not take shelter behind any excuse,it is our inability,but with limited resource & ability why i am in derivatives knowing fully this is a Leveraged High Risk zone.

Borrowing & Lending is ALLOWED in NSE,but yet not popularized,or we do not still use it,it is NOT FOR P-NOTE holder only.
If i have 100 RIL & transfer it to your A/C so that you give me some interest can it not be done here.They are organised,they have developed that interested parties association.

 

[uasish]

That is why let us start tracking the Smart Monies foot prints,as SS has pointed that selling in Fut. & Cash may not always be 1:1 so let us start tracking those,the Rules of the game is changed after FII participation let us FOLLOW their tracks left in the chart.

 

[uasish]

Asish da one confusion, what about equity buying and selling? those buying and selling is delivery base, so there wont be any short coverings( i am talking about shares which are not tradable in derivative segments, otherwise 90 % limit i set for derivatives) at those instances how we going to apply the rule ? also did u have any say on delivery base % to total traded quantity at EOD ?
P.S. Though i am no expert , my two scents on divergance
I agree divergance dont play well if market is in trend, as the case with everything, it can assist to what we see on chart.If there is ' belt hold bullish ' pattern or engulfing pattern etc and also a divergance in hand it can be above 60 % thing.

Alex can we do Inter-Day trading than Intraday or say Inter week.I have 100 X shares. say i sell today @ 100 & buy tomorrow or day after @ Rs 92.00 what happens.
I get 100*100= 10000.00 from exchange.
I return 100*92= 9200.00 to exchange.
I take out Rs 800.00 from my 100 shares.
If i did it in this last 10 months that very Portfolio of 10000.00 could have given me 6000.00 Profit,but now my capital has eroded by 80-85 % ,and that demat has ONLY 100 shares as was in the begining.

 

[orderflow13]

Asish da bit off topic, what do u think of pledging ? i didnt hv any experience of it, somehow i am scared to lock my shares to broker with written agreement.I mean to ask how much its safe ? ( apart from leveraged nature )

 

[S S]

Alex can we do Inter-Day trading than Intraday or say Inter week.I have 100 X shares. say i sell today @ 100 & buy tomorrow or day after @ Rs 92.00 what happens.
I get 100*100= 10000.00 from exchange.
I return 100*92= 9200.00 to exchange.
I take out Rs 800.00 from my 100 shares.
If i did it in this last 10 months that very Portfolio of 10000.00 could have given me 6000.00 Profit,but now my capital has eroded by 80-85 % ,and that demat has ONLY 100 shares as was in the begining.

Boss....! You have once again hit the nail on the head.

One has one's own holdings, and one could hedge that to short in F&O to earn. So, though the value of the portfolio diminishes, near equivalent could be earned.

IN ADDITION, one borrows someone else's holdings [through P-Notes] and sells them in cash market separately, only to be covered later when the prices crash. After covering, they can be returned to the original holder.

That way, one can have a cake, and eat it too.

We can only speculate

Edited to add :

Large brokerage houses insist on pledging of stocks from the Demat a/c of their clients, for providing margin. Are these the stocks that could get loaned...? Or am I missing something?

 

[rajamguru]

market has own law, whatever we say about market it doesn't care about it. it takes own time in bear phase and bull phase. In my observation very shorttime bull or bear phase 45 to 50 days takes to complete either one phase. Wherein bad news there is no response in bull phase and good news there is no response in bear phase. Let i explain one example that two months before we all were talked oil price, if oil price fallen market would have been up even technical analyst spoke, but today oil price is near about 68, market is near about lower than before.So don't trade only on basis of news.

 

[S S]

Asish da bit off topic, what do u think of pledging ? i didnt hv any experience of it, somehow i am scared to lock my shares to broker with written agreement.I mean to ask how much its safe ? ( apart from leveraged nature )

Alex, I am happy that I edited my message, posted after you, to express exactly the same thing, though, I had NOT read your message, when I did that.

But whatever you have expressed, exactly that doubt peeped in my mind too.

Incidently, from your photo that has been 'published', I wonder if you are in Film & Television Institute, also in Pune...?

 

[orderflow13]

Alex, I am happy that I edited my message, posted after you, to express exactly the same thing, though, I had NOT read your message, when I did that.

But whatever you have expressed, exactly that doubt peeped in my mind too.

Incidently, from your photo that has been 'published', I wonder if you are in Film & Television Institute, also in Pune...?

lol rofl... film institute ?no way... will take it as a compliment.