Friday, October 8, 2010

fundamental view

institutional investors are pouring money and mutual funds are net sellers.
why is that?
mutual funds is largely a pool of retail money and who will want to cash out at these levels.near new highs.what if falls kind of thinking that we all have.
FII's pouring money is actually the transfer of shareholding to stronger hands from 'weaker' retail and mutual funds.
why will FII's pour money at these levels?because they realise the trajectory of indian market.
everybody fears large protracted falls. but when sees a bottom in sight and knows we ve seen the worst and that index will now not go below 5000 levels on nifty , a larger well capitalised player will pump money.
thats whats happening.action on realisation that the gap in indian markets at 4000 nifty levels will not be filled.

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