What Happened Today?

Today morning came as  a shocker for many of the traders and investors. Some TV channels are blaming algo trading done by a big FII and some are saying that is because Yaman Rebellious attacking on UAE border. 

But why they are ignoring the very fact that FIIs are selling index futures on every rise from feb-2015. In Feb series they have sold index futures worth 5200 crores and stock futures worth 7200 crores. In March series FIIs have sold index futures worth 4843 crores however they bought stock futures worth 1150 crores.In april series they have again sold index futures worth 2875 crores and bought stock futures worth 2680 crores. In march series FIIs were buying in cash but  in april they have sold stocks in cash market worth 1100 crores, even in may they are selling in cash and in index futures. However in stock futures FIIs are covering their short positions. 

    

         So downside seems to be limited to 7950 for the short term but my medium term view is still for 7700 mentioned earlier

http://marketview123.blogspot.in/2015/04/axis-bank-axis-bank-has-formed-double.html

 

    At 8000 we can buy 40% of our favourite stocks only for portfolio holding for 2-3 years.

Disclosure--- I am not recommending anyone to go short or long. The views expressed above are my observations which i am sharing. Personally i do not trade in F&O. I only buy in  cash.