Controversial Fundamental analysis theories

[starzz]

I dont trade futures, I dont know. Futures & Options will take you to the road. Stay away from them.

What about the following quoted text? Its not about futures/options but about Cash market.

P.S: I have found one link in NSE website, downloaded the file several times, but it was always empty. ( http://www.nseindia.com/products/content/all_daily_reports.htm .. click "Short Selling" on the "Capital Market" tab)

In case you have links regarding short selling info on cash market, please share the same

Thanks

 

[starzz]

Efficient Market Hypothesis

Odd Lot Theory

The odd lot theory uses the sale of odd lots – small blocks of stocks held by individual investors – as an indicator of when to buy into a stock. Investors following the odd lot theory buy in when small investors sell out. The main assumption is that small investors are usually wrong.


The odd lot theory is contrarian strategy based off a very simple form of technical analysis – measuring odd lot sales. How successful an investor or trader following the theory is depends heavily on whether he checks the fundamentals of companies that the theory points toward or simply buys blindly. Small investors aren't going to be right or wrong all the time, so it's important to distinguish odd lot sales that are occurring from a low-risk tolerance from odd lot sales that are due to bigger problems. Individual investors are more mobile than the big funds and thus can react to severe news faster, so odd lot sales can actually be a precursor to a wider sell-off in a failing stock instead of just a mistake on the part of small-time investors.

Do SLBs make sense in this context?

http://www.nseindia.com/live_market/dynaContent/live_analysis/slbs_chain/chainDataBySeries.jsp

 

[rkkarnani]

1. Traded quantity is always half buy and half sell volume, as every buy order must have a corresponding sell order for it to be traded.

2. I couldnt not find a link aswell, but I am confident that an "Odd Lot order Book" is provided to members, A little persuasion with your broker might yield something.

You are erring Ghanisht :
Traded quantity reflected on NSE site is just the one side trade(volume), i.e. Buy (or Sell) its, not the total volume of both.

 

[Mr.G]

You are erring Ghanisht :
Traded quantity reflected on NSE site is just the one side trade(volume), i.e. Buy (or Sell) its, not the total volume of both.

OMG I didnt notice what I wrote! Hehehe, Been under the weather. Nice that you caught me!

 

[starzz]

So Mr G. and rkkarnani,

Please tell whether the following columns represent buy volume or sell volume in the following links:

1. 4th column of http://www.bseindia.com/markets/equity/EQReports/oddlot.aspx?expandable=3

2.4th column of http://www.bseindia.com/markets/equity/EQReports/slbshortcell.aspx?expandable=3&param=0

3.3rd column of http://www.bseindia.com/markets/equity/EQReports/OddLotStatistics.aspx?expandable=7

Please

 

[rkkarnani]

So Mr G. and rkkarnani,

Please tell whether the following columns represent buy volume or sell volume in the following links:

1. 4th column of http://www.bseindia.com/markets/equity/EQReports/oddlot.aspx?expandable=3

2.4th column of http://www.bseindia.com/markets/equity/EQReports/slbshortcell.aspx?expandable=3&param=0

3.3rd column of http://www.bseindia.com/markets/equity/EQReports/OddLotStatistics.aspx?expandable=7

Please

In any case and not only above links, the Quantity traded will represent the Sell Volume OR Buy Volume as both the Quantities of Buy and Sell has to match and be identical!

The links bring up pages with "no data found" except link at Serial 2 which shows a Quantity of Short Sold Kotak Bank shares at 4530 ! This qty. of 4530 is both Buy volume and Sell volume! 4530 shares of Kotak Bank were sold and 4530 shares found corresponding Buyers! The Buy OR Sell volume would be 4530 ! Buy Volume in any case would represent the Sell Volume too !
What exactly is the confusion you have in this regard, please spell it out a bit in detail.

 

[starzz]

In any case and not only above links, the Quantity traded will represent the Sell Volume OR Buy Volume as both the Quantities of Buy and Sell has to match and be identical!

The links bring up pages with "no data found" except link at Serial 2 which shows a Quantity of Short Sold Kotak Bank shares at 4530 ! This qty. of 4530 is both Buy volume and Sell volume! 4530 shares of Kotak Bank were sold and 4530 shares found corresponding Buyers! The Buy OR Sell volume would be 4530 ! Buy Volume in any case would represent the Sell Volume too !
What exactly is the confusion you have in this regard, please spell it out a bit in detail.

Thank you very much for your reply.
Yes I have to spell out my confusion in more details, but it won't be helpful unless I have answers for the following queries (this time in SLB markets).
Please bear with me and kindly answer to the following queries before the exact point of confusion is hit:

1.In the NSE website (http://www.nseindia.com/live_market/dynaContent/live_analysis/slbs_chain/chainDataBySeries.jsp), one can see only the best bids and best offers. How are they getting executed against each other?

Are there market orders too in existence (like in normal trading exchanges)?
How can limit orders trade amongst themselves?

2. In this segment,are we lending/borrowing the shares itself or their derivatives(i.e futures/options) ?


3. What are the options that the borrower can do with the borrowed shares/derivatives?
-is his only option is to sell?
-if yes,is that short selling ?
-if yes,does that selling takes place automatically and immediately (at least in the same day) after the borrower receives those shares/derivatives from the lender?

4. Please see attachment (http://www.************/download/kB8V2weJce/slb.JPG?lgfp=3000), if the entire traded/borrowed volume is ultimately shorted, can the trading/borrowed volume (circled in green) be considered as short selling volume?


5. Lastly, the above mentioned screenshot attached shows data for sep-2014.This is not EOD (daily) data. Where to get EOD (daily) data?

 

[rkkarnani]

Starzz, Verrrrry sorry! No idea at all about SLB ! Just know a bit abt it and surely musch less than what you know in this regard. The query need to be addressed to someone Senior.

 

[starzz]

Starzz, Verrrrry sorry! No idea at all about SLB ! Just know a bit abt it and surely musch less than what you know in this regard. The query need to be addressed to someone Senior.

Mr G. and other senior members, please help

 

[Mr.G]

1.In the NSE website (http://www.nseindia.com/live_market/dynaContent/live_analysis/slbs_chain/chainDataBySeries.jsp), one can see only the best bids and best offers. How are they getting executed against each other?

Are there market orders too in existence (like in normal trading exchanges)?
How can limit orders trade amongst themselves?

2. In this segment,are we lending/borrowing the shares itself or their derivatives(i.e futures/options) ?


3. What are the options that the borrower can do with the borrowed shares/derivatives?
-is his only option is to sell?
-if yes,is that short selling ?
-if yes,does that selling takes place automatically and immediately (at least in the same day) after the borrower receives those shares/derivatives from the lender?

4. Please see attachment (http://www.************/download/kB8V2weJce/slb.JPG?lgfp=3000), if the entire traded/borrowed volume is ultimately shorted, can the trading/borrowed volume (circled in green) be considered as short selling volume?


5. Lastly, the above mentioned screenshot attached shows data for sep-2014.This is not EOD (daily) data. Where to get EOD (daily) data?

Damn I didnt think I would have to answer this one. See SLB is usually used as a method for maintaining liquidity on your obligations. Retail use for it is low.

Best offer and best bid do not essentially get executed unless, the buy side or the sell side actually concede to each other, ie. you agree to buy or sell at the given price. Now sometimes, the volume as the best offer is low, then you consult the "market depth" where the second best and third best offer is shown to complete your order. These are market orders, They are not currently in trade but can be filled. Big orders trade into the market depth and this is why we see the small change in LTP.

The trading is of real shares, and the method of which is T+1. but there are SLB contracts monthly but that is for the reverse leg of the trade 1st Thursday of the series month. Price quoted is of the lending fee paid on the SLB contract.



SLB is used by people, 1) To earn fee on their idle portfolio in lending fee as lender. 2) To cover short positions for which they currently dont have underlying backing as borrower. Or To hedge against their short positions as SLB is much cheaper than buying a hedge in cash.

You can short sell SLB though, You can borrow the share, sell it, pay the fee and buy it back when the share price falls at a lower rate. Short selling in cash is not allowed in India so use this method.