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-REMEMBER
FEAR AND GREED ARE THE DRIVING FORCE OF THE MARKETS
CHEERS