New Enterents to FnO segment

[rkkarnani]

1 ADANIENT
2 APOLLOTYRE
3 AREVAT&D
4 BGRENERGY
5 FORTIS
6 GODREJIND
7 JISLJALEQS
8 MCLEODRUSS
9 MUNDRAPORT
10 ONMOBILE
11 VIDEOIND

Will trade from 19th Feb 2010
Lot sizes to be notified on18th Feb

http://www.nseindia.com/content/circulars/faop14115.pdf

 

[rkkarnani]

Dear R K Karnani,

I'm not able to get you, will you please elaborate it for my convenient, if you don't have any problem.

The above is a list of stocks that will be traded in Future and Option segment of NSE (Nationa Stock Exchange) from 19th February 2010.

The link posted will take you to the Notification by NSE in this regard.

 

[bunny]

The very high volume in all these stocks(in cash market) should sound an alarm.

 

[Even Money]

The very high volume in all these stocks(in cash market) should sound an alarm.

Can you kindly elaborate why should there be an 'alarm'!! This in my opinion is the scenario every time a stock is included in FnO!!! There are quiet a few traders who trade basically in FnO to gain from there present holding. Maybe, such people are adding these stocks to their portfolio!!! Its just my speculation!
Would like to hear from you your further views. Thanks.

 

[AW10]

Can you kindly elaborate why should there be an 'alarm'!! This in my opinion is the scenario every time a stock is included in FnO!!! There are quiet a few traders who trade basically in FnO to gain from there present holding. Maybe, such people are adding these stocks to their portfolio!!! Its just my speculation!
Would like to hear from you your further views. Thanks.

I tend to agree with Even Money that the stocks in F&O list carry different respect from trading community. And any change there, results into resuffling the underlying's holding.
Same is the case when a scrip is added /removed from Market Indices.

Some people do this reshuffling strategically keeping in mind their trading strategy but many people use this as an arbitrage opportunity.

Frankly speaking, the smart people would have already known few weeks/months about forthcoming changes in F&O list and would have taken the position already. It is the late comer who react to news are acting now. (even in smart money, there is dumb smart money)

Happy Trading

 

[bunny]

The very high volume in all these stocks(in cash market) should sound an alarm.

The very high volume seen on that day was professional selling. Its a major upthrust. Few of these stocks were also trading near their recent highs(supply zone).

Not all reading this post will be familiar of the terms I have used in the above statement. These are a part of Volume Spread Analysis(VSA) and not TA/FA.