SEBI nod to FII's for shortselling

[saivs]

hello all,

SEBI gave nod to FII's to do shortsell from today(feb1st). Is it gonna affect all of us doing intraday/margin trading???

I met a banker today from the merchant banking division and he was mentioning that its going to affect small traders BIG time because of their entry into the market. What are the forum views and opinions on this???

Sai

 

[fast_rizwaan]

1. FII's will decide Share prices.
2. Prices will be range bound. Not much rallies or reactions
3. intra-day price movement will not be more than 2.5% either way (which is good for intraday traders)

get ready for new intra-day price swings and ranges of scrips. don't use previous knowledge to do intra-day trading. observe the next few months for new price discoveries and price directions by FII's.

No, wonder FII, DII shortselling is allowed to check the market rallies for reducing indian rupee value, so that our export economy sustains.

In a way the prices will remain range bound for very long time, this also stops the huge market crashes we witnessed.

until now, FII had to keep buying the market prices to extremes and make it fall in a day or two for quick buck, but now, they have the ability to short and benefit. so the market will more reflect the fundamentals of the companies.

As retail traders, we should wait for the prices to come to an agreement between fii's and diis. then only we can get our stops, support, resistance right.

 

[Venkat123]

I think short selling is actually a healthy market activity. But shutting short selling on and off is a bad idea. Short selling should be always available.

1] Short selling makes sure that we never enter bubble territory.
2] If the shorts are wrong, they have to cover in which case there will be a big rally.

The last thing you want is people taking money off the table. You want people to play their money.

 

[Yaaro_Yaaro]

I am not clear about new SEBI rule on Shorting wef feb 1
Are FIIs entitled to short sell on delivery basis?
If yes what about DIIs?
Is a retail investor permitted to short sell on delivery basis?
Pl explain.