Shashi Dace
View Profile

NIFTY OPERATOR'S DECEPTION GAME

Shashi Dace at 07:56 PM - Dec 06, 2013 ( ) Views: 1,130

2 2

  I am writing this thread with particular reference to 05 December 2013. On this day, Nifty Future opened at 6301.55. It opened 102.40 points up , with respect to previous day's close of 6199.15. Now see the fun . Eventhough it opened  at 6301.40 it was not available for buying at that rate because at the very instant of opening Nifty future was actually trading above 6325 and within no time it made a high of 6341.10. Thus, a lot of traders got trapped in long positions somewhere at 6325 levels or above. But thereafter, IN A FLASH, Nifty future gained barely 15 points  and started its reverse journey SLOWLY from the day's high. 

  The game is simple. First a hype was created by gap up opening. But the total upward gain was meagre 15 points, whereas from that high, it made a low of 6267.10. Please note that the total downward movement was 74.30 points as against the small upward movement of just about 15 points.( Friends, we should not make a mistake of calculating the upward movement from the opening price due to the reasons stated earlier.) So, in effect, in the so called gap up market , the total downward movement was 5 times greater than the upward movement. Can you still say that 05 December was a bullish market? Think.

    Lot of gullible traders may have got trapped in long positions somewhere around 6325 levels. Also, they may have averaged further at lower levels by buying more longs, each time thinking that after all today is such a strong bullish trend and surely the price will again pick up. But alas, it never happpened that way. The market ended sharply negative with respect to that day's opening. GAP UP DAY KI KYA BAAT HAI , BEARISH TREND KI BARSAAT HAI ! 

  Can we draw any trading lesson from this? Any comments from and for the benefit of MUDRAAITES please !

 

 

 


(1 to 3 out of 3) - Latest Replies on Top | First | << Previous | Next >> | Last |
Leena Sebas at 10:40 PM - Dec 06, 2013 ( )

There is no point at all in discussing these things again and again as long as the watch dog realise the following fact.

1-Though we got indepedence in 1947 , we didnt get any idepedence  till now regarding the ruling related to financial fraud, manipulation and domination related to stock market and our currency.All are under the full control of western forces and they will keep on doing these things laughing at our authorities because of the folowing reason

our market open prior to indian opening (the first chance to manipulate the indian market by doing some cross trading those who group who create large position in indian market,else fool the indian traders after manipulating the market after trading hours, so the purpose of sgx nifty is nothing but an advantage given for overseas traders to rule indian market , same like how british ruled india before independance..We are slaves to them..realise this naked truth.

2-The next fraud game happen in the pre opening where a seperate window is created prior to the official opening and all circular trade enter in to adjustment trading before market opening..Also this time period is used to fix the opening of the nifty.so with least effort market can be controlled by a group of people.If market open with out pre opening, then prior fixing is not so easy.So the smart people who created the pre opening session to help these players from outside who are Exchange traded fund and some FII who work hand in hand with some operators inside our market..

so when all these people join their hand, and when the political parties provide all prior information from the finance ministry , the job is so easy to do.

3-The last one is the speed game using the High frequency software which generate trade in 1/1000 seconds and cancell more than 70% of the orders which is called spoofing which though my law is not permitted in indian market, but as long  There are many tools to hide such trade from the official checking, the authorities cant find anything.Those who do the fraud are well equipped with their tools and no one can touch them.

In europe some countries already stopped this practice and recently European union fined 5 billions. see the report below link.

http://www.npr.org/blogs/thetwo-way/2013/12/04/248753402/european-union-fines-banks-billions-for-rigging-interest-rates

but in india the game is going on in another form and they are sure that nothing is going to happen in india, as india fear of dollar outflow.Else they threaten india using their rating agencies.

Until and unless all are treated equally regarding the speed of the order entry, Sebi cant win the confidence of the public and investors.

Subrahmanyam Y at 08:34 PM - Dec 06, 2013 ( )

good point ...........................

but this type of gap-up will sustain in coming days in BULL trend ...............currently indian market is upward ......................

but on 16 th RBI meet is there ...................

if our market really in upward (bull trend) then next week friday close should be above 6250 or 6300 spot..Is it possible??????????????????????????????????????????????///////

Ram Babu at 08:19 PM - Dec 06, 2013 ( )

Nifty OPEN is the closing figure of pre-open trade from 9am to 9.07am.It neednt appear at the beginning of actual trade from 9.15am.Open trade of actual trade at 9.15am is not considered as OPEN

1 to 3 out of 3

Login to participate in discussion.



Top Gainers

MCDOWELL HOLDINGS LTD. 19.80 3.30 (20.00%)
HATHWAY CABLE & DATACOM 32.50 5.40 (19.93%)
SOMI CONVEYOR BELT. LTD. 14.80 2.45 (19.84%)
DEN NETWORKS LTD 80.55 10.70 (15.32%)
INDUSTRIAL INV TRUST LTD 72.80 8.00 (12.35%)
THE MANDHANA RET VENT LTD 13.35 1.20 (9.88%)
63 MOONS TECHNOLOGIES LTD 99.00 7.55 (8.26%)
CINELINE INDIA LIMITED 35.75 2.65 (8.01%)
FLEXITUFF INTER LIMITED 13.95 0.95 (7.31%)
NAVIN FLUORINE INT. LTD 689.90 45.80 (7.11%)



Top Losers

HOUSING DEV & INFRA LTD 8.80 -2.20 (-20.00%)
CG POWER AND IND SOL LTD 11.85 -2.95 (-19.93%)
VAKRANGEE LIMITED 27.70 -6.30 (-18.53%)
SANGAM (INDIA) LTD 40.00 -8.00 (-16.67%)
PARAG MILK FOODS LTD. 142.50 -18.60 (-11.55%)
PARAMOUNT COMM LTD 8.85 -1.10 (-11.06%)
AKSH OPTIFIBRE LIMITED 6.55 -0.80 (-10.88%)
SHREYAS SHIPPING & LOGIST 72.00 -8.00 (-10.00%)
SUPERHOUSE LIMITED 70.85 -7.85 (-9.97%)
IND TERRAIN FASHIONS LTD 75.00 -8.15 (-9.80%)