Below is my Interpretation of FII OI data Sheet for 12-Mar-12.

1. FII  sold  24854  Contracts of NF worth 674 cores OI also decreasing  by 4252 contracts.

2. As Nifty Futures was up by 24  points and OI has decreased by 4252  contracts means  profit booking on  longs was done by institutions.
3. Today we Opened with a Gap of 80 Points and quickly got sold off  and after better than IIP data 6.8% Nifty use this to fall further and fill the gap.

4. Another Interesting aspect is the Golden Crossover of 50/200 …

It’s important to have a plan, remain disciplined in executing that plan, and pay attention to what is actually happening rather than what you expect to happen. We try to be as objective as possible in our analyses… It’s not always easy for people who are involved every day to stay with a plan when misfortune occurs for a time. You always encounter the unexpected and this can push discipline right out of the way in the name of prudence. But prudence almost always dictates staying with the approach that …

The Week gone by ended with  CRR (Credit Reserve Ratio) cut of 75 BPS from RBI.  It was a Surprise in term of Timings as we have credit policy on 15 March and quantum. Most Optimistic market participants accepted only 50 BPS, 75 BPS was quiet a surprise as it pumped 48,000 Cores in market.
Another Shock which came late in evening was ISDA (International Swaps and Derivatives Association, Inc.) saying  Greek CDS (Credit Default Swap)Triggered By Use Of Collective-Action Clauses.
Let me explain CDS in layman term:
Suppose you bought a Car …

Learning to accept losses as part of the game and cutting them short is the single most important step towards becoming consistently profitable. It sounds simple, but in reality is extremely difficult for everybody.
Why?
Because we’ve been taught that giving up is for losers and we should fight till last breath. I certainly agree that you should not give up quickly, but only if you can influence the end result.
Let me be clear, the stock doesn’t know that you own it and it doesn’t care that you cannot afford to lose the money. The market will strip your last …

Below is my Interpretation of FII OI data Sheet for 07-Mar-12.
Wishing all Blog Readers a Happy Holi.
1. FII  sold  28305  Contracts of NF worth 742 cores OI also decreasing  by 18059 contracts.

2. As Nifty Futures was up by 8  points and OI has decreased by 18059  contracts means  profit booking on  shorts were done by institutions
3. Yesterday close was very crucial for Nifty as it bounced from the expected support of 5171 as shown in below chart. 5166 was 200 DMA and 5171 was channel support.

4. From past 2 days …