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I am an independant trader in the equities Markets since 2007.
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  • Indian's Sensex Challenges Pre Crash Levels while Indian small caps and mid caps maintain considerable distance from peak

    Since the beginning of September, Indian Markets have rocketed and currently are at Pre crash levels. India's Benchmark sensex closed on Monday at 20,117. The highest pre crash daily close was on January 8th 2008 at 20873. So we are not too far from the ultimate closing high on the sensex. The market pulled in last week and has received support at 19771 so an attempt to take on the 21000 level cannot be written off.

    Curiously, the small cap and mid cap indices have not taken out their pre crash levels and remain at a considerable distance from their all time tops in 2008. 

    The mid cap index is currently 8142 at while its all time high closing was at 10102 on 7th January 2007. The mid cap index is still about 19% from its all time high.

    The small cap index is currently at 10280 while its all time high closing was at 13975 on 7th January 2007. The mid cap index is still about 26% from its all time high.

    One explanation could be that the current advance in the Indian markets is being heavily subscribed to by Foreign Institutional Investors who traditionally demand exposure only to blue chips and are not embracing the risk trade right now.

    Since the beginning of the year, Foreign Institutional Investors have been net buyers of Indian stocks seeing inflows to the tune of $8.75 billion, with $4.39 billion coming in September 2010 alone. While Domestic Institutional Investors have had a net outflow of investment to the tune of $2.14 billion in September alone. Similarly Indian retail investors have had a net outflow to the tune of $2.13 billion since the beginning of the year. 

    So the question is what are the Domestic Institutional Investor and retail Investor in India missing that the Foreign Institutional Investors are seeing or are the Foreign Institutional Investors missing something.



    Disclosure: "No positions"

    Disclosure: "No Positions"

    Disclosure: "No positions"
    Sep 27 6:51 PM | Link | Comment!
  • Steve has an apple that defies gravity
    In the 1660’s Sir Isaac Newton formulated the theory of Gravitation by watching the fall of an Apple from a tree. Steve on the other hand seems to have an apple that is ascending to the skies proving Sir Isaac wrong ( At least on a stock Chart ).

    Disclosure: No Positions
    May 03 1:19 PM | Link | Comment!
  • To Infinity and Beyond - Baidu
    Baidu is a Chinese language internet search provider with more than 60% of China’s search market. Investors in Baidu seem to be on a ride that is taking them to Infinity and Beyond. This stock from a low of around $100 in March 2009, is now perched at around $700. On April 29th, this stock rose by one hundred dollars in just one day.

    Disclosure: No Positions
    May 03 1:17 PM | Link | Comment!
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