Market manupulation...Is this possible...?

milind857 · #1 22nd January 2007, 10:48 PM

Hello,

I got a news on last thursday when market suddenly came down from the top to a much lower level. Recovered little @ 2.30 around.
I received a call from my RM that in mumbai brokers shorted 10 Lacs nifty futures. They usually do such kind of things all together. Is this posible...?
Market recovered when they covered it..
This news really shakes my attitude towards the market....

Milind

kkeskar92 · #2 22nd January 2007, 11:54 PM

Hi Milind,
The stock market is the game of manipulation and one has to know how to profit from it.There is thread on this forum-- ' deadly game of stock manipulation'---you can go through it. I read a book named 'undeclared stock market secrets' where you can track what fund managers and market makers are doing and how to progit from it.
As of now, most of the stocks are overvalued and fund managers want to buy them at lower rates. So, they sell nifty futures, short the stocks---so the market starts going down........this leads to panic selling by the retail investors.......this is the great time for fund managers since they can now buy the stocks at a lower price.As they start buying.....market start going up....retailers believe it and start buying.....and again the same cycle begins.----KK

#3 23rd January 2007, 12:26 AM

Agree. Stock market is a game of big players. If you know how to play and profit then only jump in. First of all stay away from all the tips and tricks and brokerage recos. They are all crap and bulls**t things.

Else be an investor! Invest in good companies from a long term perspective and just forget it.

But I know, everyone wants to be a millionaire the very next day, so this advice will be ignored by everyone

neo · #4 23rd January 2007, 01:06 AM

Well said,

However I always look at the general tips from brokerage firms, which these business channels show. They are good indication for us to find the stocks, where these big boys are stuck and they want exit (either short or long side). So once I get recommendation for a stock, I Just do my study, Look at technical indicators and if indicators shows reverse direction, I just follow them by knowing that Big boys would be in my side..

I mean, recently RIL came with good results, and On CNBC everyone did praised it a lot. So I liquidated all my longs in RIL and initiated a short option, By knowing that RIL had run a lot in short time, which is unusual and would face the profit taking in next few days..

However Fundamentals of this stock is very good, so I only initiated short option instead of short future position.

However before using this method, Please make sure you did your study properly and all technical indicators are supportive..

swagat86 · #5 23rd January 2007, 07:57 AM

IM sorry but i dont agree with u ppl. There are hundreeds of FII's( located in Diff parts of the world) and there are hundreds of Fund managers in the country itself. Manupulation is impossible untill before shorting 10 lac NF each one gives a call to each other saying " boss im shorting u also short".

In my viewpoint its a case of Mass Psychology nothing else. Ppl tend to do things wen they see others doin it too. For example, on the Roadside if u find a person starin at the the sky there will be 100's of passerby's who will also look. Wen i meet my frnds they tell me "Yar ye Praj ind bahut bar gaya hai" And they follow the crowd and hence only land up havin nothing. Ppl love to do things when they see the proof of it.

In vv illiquid counters it may be a case when the Stock Operators start buying or selling and hence UC or LC. Thats may be a case agreeable. But not in all stocks or specialy Nifty Futs.

Thanks

kkeskar92 · #6 23rd January 2007, 10:50 PM

Hi,
I have the book in e-book format....author is Tom Wiiliams.....he stresses on the price spread and volume analysis.....no other indicators. I will upload the book here or provide a link for the same soon.-----KK

rpc · #7 23rd January 2007, 11:55 PM

hi kk
Thanks a lot .Waiting for upload.
with best wishes
rpc

qrius2noall · #8 24th January 2007, 12:26 AM

Quote:

Originally Posted by milind857

Hello,

I got a news on last thursday when market suddenly came down from the top to a much lower level. Recovered little @ 2.30 around.
I received a call from my RM that in mumbai brokers shorted 10 Lacs nifty futures. They usually do such kind of things all together. Is this posible...?
Market recovered when they covered it..
This news really shakes my attitude towards the market....

Milind

HELLO MILIND

WHAT YOU HEARD MIGHT HAVE BEEN TRUE HAD THIS BEEN THE TIMES OF 1980'S(I HAVE SEEN THOSE TIMES MYSELF)WHEN A COTERIE OF BROKERS AND OPERATORS USED TO RULE THE BOURSES IN THE OF OUTCRY SYSTEM OF TRADING ON THE FLOOR)
BUT NOW A DAYS THIS CAN BE POSSIBLE ONLY IF ITS DONE ON A VERY MASSIVE SCALE AND IN A VERY WELL ORGANIZED AND HUSH-HUSH MANNER(LIKE NISSAN COPPER AFFAIR)

LETS ASSUME FOR A MOMENT WHAT YOU ARE SAYING IS TRUE-10 LAKHS OF NIFTY,WE ARE TALKING A TURNOVER OF SAY 1000 CRORE,ALMOST LOOSE CHANGE COMPARED TO THE TURNOVER OF 50-60,000 CRORE DAILY

SO CHANCES THAT A GROUP OF BROKERS CAN GANG UP AND RULE THE MARKET ARE PRETTY SLIM,SIMPLY BECAUSE THOSE WHOSE INTERESTS ARE GETTING HURT BY THIS ACTION WILL ALSO GANG UP TO FIGHT THIS(WHO WANTS TO SUFFER LOSSES?)

AND PERSONALLY I BELIEVE EVEN IF SOME PEOPLE SHORT NIFTY(FOR WHATEVER REASON) THEY CANNOT SUCCEED UNLESS THERE ARE BUYERS WHO W'D LIKE TO GO LONG ON THESE SHORTS-SO WHILE A GROUP OF PEOPLE IS BEARISH OF THE MARKET,SIMULTANEOUSLY THERE IS A GROUP WHO IS BULLISH TOO,SO THIS SEESAW WILL CONTINUE TO SWING TILL A BALANCE OCCURS

AND LASTLY,IT IS THE VESTED INTEREST OF SOME GROUPS TO SPREAD SUCH MISINFORMATION SO AS TO CREATE PANIC-REMEMBERFEAR AND GREED ARE THE DRIVING FORCE OF THE MARKETS

CHEERS

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