Market is still fine and the interesting thing to me was that we had a sell off two days back and for about 7 days foreign institutional investors (FII) flows had dried up and yesterday FIIs bought about Rs 1,900 crore. There is a little bit of cat and mouse going around there. People might have missed the big 20% dash after the election result and therefore lot of the FIIs who are sitting on cash might have sat back and said, “We won’t buy now but we will buy the dip.” But they must have figured out, after the dip and the subsequent pullback that this market probably will not oblige with as bigger dip as they are expecting. So, they probably thought that when the crack came to 4,100, it will lead them to 3,800 and give them the additional 1,000 points on the Sensex to buy below but then the market bounced back the next day and yesterday they came back and deployed almost a couple of 1,000 crore of cash.
If this is the FII telling you that waiting won’t work, I will be made to buy higher and therefore I might as well deploy the cash that is very good news which probably means that some more chasing of the momentum will happen from these global guys which will take the markets probably higher in the near-term. For the moment, the Nifty seems set to get back to where it had corrected from 4,400-4,500 band - whether it is good for even more from there will have to see and find out. But I think a retest of the top end of the range seems quite likely after what has happened in the last couple of days.
I think it is a nice game which is going on. People who are buying the market right now know the cash is there and they just want to draw that cash into the market without giving you the opportunity to sleep. We talk of actions in the market who are buying as in two big people are buying, it is not like that. But the market is so wise that it knows exactly how the money will be sucked in.
-- Courtesy: cnbc.tv
If this is the FII telling you that waiting won’t work, I will be made to buy higher and therefore I might as well deploy the cash that is very good news which probably means that some more chasing of the momentum will happen from these global guys which will take the markets probably higher in the near-term. For the moment, the Nifty seems set to get back to where it had corrected from 4,400-4,500 band - whether it is good for even more from there will have to see and find out. But I think a retest of the top end of the range seems quite likely after what has happened in the last couple of days.
I think it is a nice game which is going on. People who are buying the market right now know the cash is there and they just want to draw that cash into the market without giving you the opportunity to sleep. We talk of actions in the market who are buying as in two big people are buying, it is not like that. But the market is so wise that it knows exactly how the money will be sucked in.
-- Courtesy: cnbc.tv
