Stop at Nothing

Each passing day market is breaching new records and attaining new highs. The indices have already crossed the resistance level and are very close to the magical marks, with the future contract already crossed that magical mark as they are getting traded at a premium as compared to the cash price.

All traders and investors are speeches and clueless about the rally, the only people who are expressing there comment are the market analysts; according to them there is still a lot of steam left in the market and market will scale to new highs.

If you ask me about the reason of the current rally, I don’t find any concrete reasons, happenings, news that might have contributed to this rally. The only factor for the rally is FII. If we see the contribution of FII’S, FII’s pumped Rs 83,400 Crore into the domestic equities in 2009, but started exiting in early 2010. And the remaining trend for the year is as below,

Month	Net Position	Net amount
January	Sellers	-500 Crore
Feb	Buyers	1,216 Crore
March	Buyers	19,928 Crore
April	Buyers	9,361 Crore
May	Buyers	586 Crore
June	Buyers	27,125 Crore
July
August	Buyers	11,687 Crore
Total	Buyer	60,477 Crore

Analysts believe that the Indian market is likely to attract more inflow from overseas in medium to long-term investments, as they see higher return from emerging economies. This means we do expect more money getting into the stock market, which means that 24,000 level for Sensex and 6300 for Nifty is not far away.

In between the DII's are net sellers only also the mutual fund houses are registering heavy redeemption of the funds as investors are of a opinion that the market has already gain it;s all time high and might see correction in days to come.

Image source : thehindu.com