YIN & YANG TUSSLE : A MARKET'S COSMIC COMEDY OF BALANCE..

 

I always wonder about the quotes and the personalities who quotes, that what made the person to say/write such quote and how they can be common to any situation related to crux of the quotes. Like in above quote the main crux is POWER.. Well the above quote is the exact topic of today's blog. 

Yes, yes this blog is related to market data only but trying to focus the devil in disguise in Indian Stock Market. 

We all know the big players who actually controls the market. They are FPIs and DIIs. They are YIN and YANG of the market. The question is here is who is YIN and who is YANG? Yin represents feminine, cold, dark and passive power while YANG represent masculine, light, warmth and dominating power. 

I vote, that FPIs are real YANG of the stock market in INDIA. They are the devil in disguise as well as the friends to those who understand them very well. I will prove this with data below.

Market Confusion:

But why I am relating this concept of YIN & YANG to FPIs & DIIs? 

Recently during the Indian Central Election results we all felt some heat of the big players, few got rewarded while many got scared and punished because of the heat of the big players. 

If someone is arguing that long term investors do have the impact then why long term investors are selecting the investment options which giving the higher returns, why they do not want convention investment option which give returns of debt investment? Why there is always race between mutual funds and PMS houses to showcase the returns? Observe carefully, the highlights are how our investment option is generating the ALPHA (excess returns, it may be of 1 or 2 % over others).

The drama of Election results actually went to its peak on 3rd June 2024, when market jumped to its new all time high. Market (NIFTY) showed positivity of 3.25% on that day, the reason was given by media was exit polls which were in favour of ruling party. This is true to all extent also about reports from media, because on 4th June, the result day showing complete different picture than exit polls. Market reacted to that very strongly. Market slipped by -5.93%. So even for the long term investors, investing money in the equity market on 4th June 2024, in any form would have made more sense than investing money on 3rd June 2024 on the basis of exit poll results. Investors of 4th June clearly got the discount of 5 to 6% on an average than any others as of now. 

Our YANG showed more dominance again, Fiis added Rs.6850.72 Crores in cash segment while Diis added Rs.1913.98 Crs. on 3rd June 24 and very next day Fiis and Diis sold around double than previous day which was Rs. 12436.22 Cr. and 3318.98 Cr. respectively.

FPIs also created 65733 future index long positions by squaring off the 55690 Future Index short on      3rd June 24 as they were positive in cash market, while next they on negative sentiments of the market due to unexpected mismatch may be, FPIs created 35545 Future index shorts positions squaring of nominal longs. Diis played exactly same with the figures of 10000 future index long on 3rd June But  squared off 11144 Future index shorts, which ideally shows that they were trying support the market by doing short recovery of future positions, 

Market danced to the tune of the FIIs again. I tried to explain my level best about who was dominating and who was supporting the market. To your surprise this game is going on endlessly that Fiis are making the first move and Diis are countering it. In my opinion if DIIs wants to control the market then they should make first move. But they will not YET. The reason will be clear with the following data points.

Recently I had the constructive conversation in my circle, about the inflows and outflows. Yes now a days it has been very important to consider the liquidity. I got opposed on the thought of FPIs still dominating the market, The argument was, Fiis no more controlling the market, Our SIP book only has grown to 20371 Cr. in the month of April 2024 from 13728 Crores of March 2024. The inflows from domestic investors has grown significantly and direct participation in the equity market has grown drastically. 

All are true, the data from amfiindia.com suggests all the figures are very correct. But the question remains that whether this inflow is sufficient to counter the moneyflow of FPIs? The answer is BIG NO. Let's find out how:

Amfiindia.com suggests that mutual funds AUM (asset under management) book in India has grown to Rs. 57,25,898 Crores from Rs. 9,45,000 Crores, in the span of 10 years, That is huge jump, It has grown over 6 times in 10 years. I have dissected further with the help of NSDL. 

                                                                   Data as on May 2024.

 This data shows all the domestic players who are active except NRIs and OCBs investments which normally are routed through either direct equities or occasionally with the help of local players. 

   **For both tables, Figures are in INR Crores. The data has taken from NSDL. The data is as on May 2024.

The second table represents participants under Foreign Investors. The picture gets more clear here. 

The difference of INR 19,04,454 Crores in Equity market makes FPIs, YANG. With this data, I must say that, for DIIs, "DELHI ABHI DUR HAI"..

Coming to our regular data, let have top to bottom approach. 

Net Monthly FPI Investments:

 Source: NSDL

Overall FPIs are bearish as we can see the outflow of  INR 25862 Crores from Indian equity market. Interestingly they are not negative on overall basis and we can observe the inflow in other markets. This is giving some confidence as negativity in equity market can be due to the big event of elections. Further data ahead will give more clarity during the year.

Countrywise AUC Data:

Top FPIs were happy by maintaining the neutral stance for the Month of May 2024. 

There was hardly 0.2% change in total top 10 FPIs total numbers in comparison with last month. US, Singapore, Ireland, Canada, Japan, Norway FPIs looks still positive but inflows has definitely got affected with respect to previous months.

3. Fortnightly Sectoral Shifts:

Whatever the positivity by Top FPIs suggests the buying across many sectors in this month. In the month of April 2024 we saw huge negativity.

Source : NSDL

Below are the gainers and losers:

Gainers:-

Constructions, Capital Goods, Realty, Telecommunications are the favourites of favourites. 

IT consistently suggests outflow from last few fortnights, Consumer services, FMCG have joined IT. This may be election results as mentioned in my previous blog.

This is all for this blog. Leave your thoughts, feedback, critics in comment section. Lets grow together.

** Disclaimer: The data given is publically available data. Its is taken from nseindia.com, NSDL, amfiindia.com. The analysis and interpretation is based on personal observations and data records maintained on personal levels. Kindly do not take any trade based on the above data in any segment of the market. 

HAPPY INVESTING.... 

"Indian Stock Market Roller Coaster: General Elections Fuel FPI Volatility, Leaving Investors Wary"

 

Well said by well known American Economist W. Edwards Deming that, "WITHOUT DATA YOU'RE JUST ANOTHER PERSON WITH AN OPINION". 

I always wondered why he has not added without data INTERPRETATION. Now a days, data is available on just a click, the real problem starts with efforts to collect the authenticate data, maintaining it and interpreting it. Previously no one was even talking about FPI data so frequently but now even small investors talk about it, Unfortunate part of it is, they talk only the language of their influencers.. So now a days it will be appropriate if you say 'Without data interpretation of your own you are just another person with an opinion of others. 

In this blog, I will just try to give little bit more data than previous blog, of course from the authentic sources. I will also share my opinion but I request you to please interpret this data at your best of the capacity. You can also cross check the data and point out if I have made any mistake in the analysis. 

Picture this: FPIs swooping into the Indian market like Heroes in a masala movie, ready to shake things up with their foreign funds and fancy suits. They bring money, they bring excitement and most importantly, they bring a whole lot of drama!

One day, FPIs are showering the market with love, buying up stocks like they're going out of style. The next day? Well, let's just say they might as well have disappeared into thin air faster than a magician in a magic show. And your portfolio is left wondering, "was it all just a dream?"

But, who can blame them? FPIs are like cool kids at the party, sometimes they're all in, dancing on tables and making it rain rupees. Other times, they're just ghosting the scene faster than you can say "SENSEX". 

Fortnightly Sectoral Shifts: 

I am sharing the data for 2 fortnights here as previously fortnight data was not presented due to late updation of the data from the source. It covers the data from 15th April to 30th April 2024 and from 30th April to 15th May 2024. Reader must look at the data in continuation which will suggest current confused scenario of the stock market. 

Source: NSDL

    

I want you to capture the +Ve and -Ve signs in the % change column of the above table. One questions arises here AISA KYA HUA 15 DIN MAIN KI HALAT HI BADAL GAYE?? 15th April to 30th April was lovely positivity, Market touched 1st ATH (all time high) of 22775 (NIFTY) on 10th April 2024 (2nd ATH which is current ATH on May 03,2024, which is 22794.70- NIFTY.). Then for next 15 days, lovely negativity. Nifty levels came down by 3%, that are around 691 points.

Below table shows the winners and losers. 

Winners First:

Losers:

The highlighted losers were net winners in the last fortnight. All are negative in this latest fortnight by either same gain they had previously or greater than that. I guess FPIs either realized that they made mistake by investing these sectors as the elections are yet not over or they are just playing ultra short term in the market. Quite unusual behaviour of smart money.

If you notice closely, Automobile and auto component sector was hot favourite of FPIs from quite some time, while Chemical sector is replacing that position for FPIs. While they are hating IT since very long. Forest material as sector showed negativity after the positive run for quite some time. 

Realigning the individual satellite stock portfolios with big players at high valuations of the market always make sense. 

Country Wise FPI Money Flow:

This data is not available for the current month that is May 2024. Looking at the data till April 2024, This data should give smile on investors face. 

                                                                Source: NSDL

This data shows that FPIs from Canada, Japan, Norway, Singapore, Mauritius leading the table of the Net investors of Indian stock market, as all have contributed in investing. For the month of May 2024 we can get to know only after the end of the month.

Monthly FPI Net Investments:

This table gives the idea about what FPIs are upto. FPIs looks negative in equity investments but the money has moved to debt, debt VRR and hybrid investments, net basis FPIs looks positive towards Indian economy for sure.

 Source: NSDL    

*For May 2024: figures are captured as on 17th May 2024.

Equity CASH Segment:

Except March 2024, FIIs are taking out the money from Cash segment of Indian stock market. 

Fiis are net SELLERs in the cash segment with -1,18,729.46 Cr. worth net selling from Jan 2024 till date while Diis are net BUYERS in the cash segment with +1,58,646.42 Cr. worth net buying for the same period. Clearly we can see that Diis are managing to control the market as of now, while Fiis showing the negativity in cash segment but positive on overall Indian market gives confidence to the investors. As we know that election is the event which decides the sectoral shifts and money inflow and outflow, this negativity of the Fiis from cash segment of Indian stock market may be for rebalancing and restructuring of their portfolio. 

Fiis monthly figures in cash segment are as below:

Jan 2024: -35977.97 Cr.

Feb 2024: -15967.72 Cr

Mar 2024: +3314.47 Cr.

Apr 2024: -35693.19 Cr.

May 2024: -35532.47 Cr. as on 17th May 2024.

*All data is from personal records, recorded daily from www.nseindia.com and www.moneycontrol.com

Rate of selling is way higher in the month of May 2024 as it has already crossed 35532 Cr. If Fiis still are selling in the cash segment then that will be highest figure since last 7 months. 

I always face the question that why I always follow FIIs and not DIIs, when DIIs most of the time in the recent past are successful in maintaining market high. Also there is lot more data available that Diis which includes mfs, pms houses are gaining a lot more inflows than ever in terms of equity investments.

The reason is very simple, Diis are not allowed to participate in derivatives actively, they can only take the hedged positions in the derivative segment. They are not at all participative in the Option category of derivatives except for very less times, like once in a blue moon. I have been maintaining the market data since many years in row on daily basis, I have observed that FIIs will always work on the Valuations of the market, so be it indices or the stocks. If they are looking market has become overvalued they will somehow manage to pull down the market, and yes they do not hesitate to take down the market by using Future short positions. Below is the reference of current situation in Indian derivative market, especially futures, as options are used for pure hedging purposes.

INDEX FUTURES SEGMENT:

The Long to Short ratio of future positions has its own significance in the future market, probably worldwide. This ratio has proven strong record points that Fiis somehow follow the limits of the ratio. In the past when the ratio is in between 0.3 to 0.4, which means long positions are less than short position and is in between 0.3 to 0.4 ratio, market has shown the reversal and market has came up. Similarly when the ratio is between 3.9 to 4.5, that means long positions are higher than short positions and is in between 3.9 to 4.5 ratio, market has shown the reversal and came down. This long to short ratio is of Index Future positions. This is not a written rule but it does have 80%-90% probability that this limits will be respected. It has proven in the past on many instances. This data can be recorded from nseindia.com on daily basis for FIIs, Prop Desk, DIIs and in any combinations in them. I personally give lot of importance to FIIs LS (Long- Short) ratio. and keep watch on prop desk data too. This gives lot of help to understand the undercurrents of the market. 

Currently, as on 18th May 2024, Fiis LS ratio is around 0.39, It touched 0.36 on 16th May 2024 and shown reversal on 17th May 2024.Currently Fiis are carrying around 407071 Index future short positions out of which around 313232 Index future short positions are big short positions that means more than around 1.75% of the total future index positions are made in single day. This if you calculate in terms of open interest, then it comes out around 7500 open interest (open contracts) made in single day. This 1.75% figure also come with the observation from the past records and do not have any mentioned record by any certified analyst. Fiis are currently carrying 160596 Index Future long positions out of which 107248 are big future long positions (logic is same for the word 'big'). Below table will give you idea of LSR (LONG SHORT RATIO) movement.

                          Data Source: nseindia.com,  Analysis: personal data records

This data is useful for those who wish to read the undercurrent of the market. With this data, unlike technical chart readers who just say If market touches this level than this will happen or that will happen, one will know the best probability of the market directions along with real support and resistances of big players. Certified Analyst use all the information of the data present along with the charts and fundamentals.

So currently if index future short positions are way higher than index future long positions which tells that big players (Fiis) are carrying bearish sentiments, and there is possibility that market can show the reversal as the limits of LSR shows 0.39. I am just suggesting the possibility here, just take the note of the possibility because on the other hand there is still room for LSR 0.30. It all depends on what is happening on coming near future.

Overall, with the above data, I only say that investors should be vigilant and enter in the dips and traders should be more cautious as national event of elections is showing tremendous impact of mood swings of smart money.

Leave your suggestions/critics/appreciation in the comment box below. Share the link if you find this blog adding any value to your existing knowledge of Indian Stock Market. Let's try to be always in profits together in the journey of creating wealth......

**Disclaimer: The data I have given is taken from the sources that I have mentioned above after each table. It is publically available data. I am not suggesting / recommending any positions in any segments of the Indian Equity Market. Please do not take any positions in any segment by just referring this data. Consult your own financial/ investment planner before investing. 

HAPPY INVESTING.......

 

Lakshmi Chanchal hoti hai.. Churning at its best from FPIs...

Human mind always reluctant to the constant change, but those who adapts the changes constantly, are the most successful people in the world. May be that is why we worship to the most fickling goddess Lakshmi..

I am here relating the constant changes to the churning in the portfolio. Recent past has proved that the active fund managers in specifically PMSes has out performed the other pmses, not marginally but with the huge difference. If anyone arguing that they have got the boost of the bullish market then point to be noted here that this was the same condition for every fund managers.  

The ancient phrase of "Lakshmi chanchal hoti hai" always fits so well in the stock market. Not even only the stock market but money flows like water where there is ditch (low valuations in terms of asset classes). We always have seen the money moving in between stocks, commodities, fixed income, currencies etc.

In this blog, I will try to cover the movement of foreign portfolio investors money in the stock market, which was significant after many months. The reasons for the churns can be logically, the forthcoming elections and financial year ending. Irrespective of the reasons, noticing the changes will aid investors/ traders stock portfolios. 

Fortnightly Sectoral Shifts:

Month of March we have seen Nifty moving up and down by almost 3% negating the overall effect, but if you see the graph below, we can clearly relate the movement of Nifty price with the data which I am presenting. Here I am making the assumptions that FPIs have gain the control on the stock market again irrespective of the market participation of retail investors, DIIs, and prop desks. That simply means the trend is now regularized.

Presenting below the sectoral shifts for complete month of march for relating to this graph. The purpose of sharing this is purely to focus on the idea of following the market movers, which normally retail investors misses out in the journey of making money from the stock market. 

                                                              Data source: NSDL.

This data publishes every fortnightly. Notice the % changes of the sectors before 15th March 2024, only 3 sectors received the inflow from FPIs they were Telecommunications (11%), FMCG (2%), Chemicals (1%). Rest of the sectors experienced major outflow. That is when the market was at low for the month on 19th Mar 24. Post 19th Mar 24, market showed the positivity and covered the dip. At the end of the March 24, we can see that only 2 sectors that are IT (-10%) and Media entertainment and publications (-2%) were negative. Utilities and diversified sectors gained percentage double digit inflow of the money, while Automobile sector showed sudden positivity after Oct 23.

Normally it has been observed that these kind of movement are very rare and money gradually comes in and goes out from the sector, but as I said, FPIs are keen on the big event and probably wanted to restructure the portfolio, making align to the most probable winning sectors, I have mentioned in previous blog about few sectors like automobiles, FMCG, consumer services etc. are the favourites of big players during the election events. 

With this the top 5 gainers from above and losers are as below. 

   

Countrywise FPI AUC monitor: 

                                                                     Source: NSDL

This data suggests that there was slight drop in monthly money flow from the top FPIs, French FPIs were among the highest with drawers followed by Japanese FPIs. Singapore FPIs are supporting the Indian stock market big ways as usual, while USA FPIs (sharks of the stock market) were also slightly more positive about Indian Stock Market.

Monthly FPI Net Investments:

This data suggests macro picture about the money flow of FPIs. It clearly suggest that still FPIs are way behind in covering the negativity in the Indian Stock market. So there is still room left for positivity in the stock market. April data is till date data.

                                    

                                               Source: NSDL

Leave your thoughts/ feedback/ Critics in comment section and share the blog to all who want to know and grow. 

Disclaimer: The data shared is publically available and from the personal records, I have mention the source of the data each time. I am not suggesting to take any positions into any segments of the stock market, this data and conclusion can be completely wrong. 

Election Rally... What Data Is Saying??

 

Hi to all stock market lovers,

After 2 months of tremendous volatility, now market is showing little numbness in volatility index, Index Vix touched to 17.66 and now on 13.61. With lowering of India VIX, market is touching ALL TIME HIGH (ATH) every other day market made sure that the retail investors will remain in confused state.

No, this ATH is not the sign of bull run. We have recently experienced that in bull run, your portfolio will be in the green most of the time, but currently investors portfolio is either neutral or in red as small and mid caps are in the tremendous fear of down move. Unfortunately, investors have avoided FOMO factor by adding excess small and mid caps in their portfolios. Recently invested direct equity investments are definitely bleeding, but investors those who have opted for the safe routes of MF are still maintaining the portfolio alpha (excess returns).

Looking at the market, currently it looks like market is exhausted by the current run, big bears are constantly testing the waters, they have tried in recent past to move the market in negative direction but they have failed for sure. The best part of the big players is, unlike retail investors they change the bus and the direction according to the market mood very quickly. Previously FIIs were bearish and in the last 2 months they were constantly selling the CASH segment.

For the month of January and February 2024 Fiis were negative with the net selling of Rs 51940.6 Crs. DIIs absorbed that selling with net buying of Rs. 52123.93 Crs. 

For the month of March 2024 Till date, both FIIs and DIIs are net buyers with net buying of Rs. 10128.15 Crs. and Rs. 13898.99 Crs. 

For the last 6 months FIIs were net sellers with selling of around Rs.39191.25 Crs. While Diis were net buyers with buying of around Rs.114582.38 Crs. 

*All the data given are from moneycontrol.com and personal data records, recorded from nseindia.com on daily basis.

It is always observed that whenever big bears wanted to move the market downwards they create negative positions in futures followed by options and then cash, with no rules on short selling they were actually in position to create the huge future short positions and they created it also. 

In the month of Jan 24 bear FIIs were carrying around 1.25 lakhs of open big short positions (positions made more than 7.5k in single day, that comes roughly around 10% in single day) in Futures, they tried hard by creating the options bearish positions and selling the cash till Feb 2024, but they got very heavy competition this time and they failed in directing the market in negative direction. 

In the first week of the March 24, this month, FIIs are currently carrying only 53k big future short positions and they have closed the rest in the losses. This is not surprising, this pattern in recent past have observed many times even during the state elections. Indian stock market is definitely showing the positivity with the highest ever participants in the market. In my previous blog I have mentioned the Top 10 country wise FPIs and their AUCs (assets under custody), I have also mentioned the who are the bears and who are the bulls from FPIs league, This time bear FPIs have faced the rough patch due to bulls in the stock market.

Moving to monthly data of FPIs which includes FPI monthly net investments, FPI's sector wise shifts and AUC wise FPI change in the investments below.

1. AUC Wise Top 10 FPI data:

This table shows the view of FPIs for the last couple of months.

         Source: NSDL, FPI monitor

France, Japan, Singapore FPIs were super bullish for the month of Feb 24 while Canada FPIs prefered profit booking from Indian Equity market. For the percentage change please refer the table.

2. Sector wise FPIs movements:

                                                Source: NSDL, FPI monitor

 This table successfully gives the idea that what big players are doing in which sectors, Please find below the top 5 gaining and losing sectors in below tables:

                                                         Source: NSDL FPI monitor

Reality segments is gaining the attention again followed by capital goods and constructions.

Capital goods, constructions, construction material, Utilities and telecommunication sectors if you observed closely were losers in previous fortnightly data.

                                                       Source: NSDL FPI monitor. 

Media entertainment and publications leading the losers table turing positive to negative in the last fortnight. Oil gas & consumable fuels, IT has also joined the league of positive to negative movements for the fortnight. If you have gone through my previous blog you will get the answer that why media entertainment & publications, oil gas & consumable fuels are negative. IT in my opinion is continuing the struggle with small ups in the past. 

3. Monthly FPI Net investments: 

                                                          Source: NSDL, FPI monitor.

This table is self explanatory and no explanation needed. 

This is it for this blog, reader can connect the dots to get the answer of the first question, Is market data suggesting any election rally? Share your answer in comments section along with feedback/ critics/ suggestion/ doubts. Let all get the knowledge apart from the news and good story telling about the forecast of the stocks based just fundamental and technical data.

Disclaimer:- This all data is given from my personal records which are recorded timely from the source mentioned above. The interpretation of the data analysis is purely my personal opinion and I may be completely wrong. Do not take any position in any segment of the stock market based on the above data. Reader can cross check the data as it is publically available data.

This blog is humble attempt to present the data that normally retail investors do not go through easily. By tracking this data, I am sure portfolio alpha can be always maintained with correct rebalancing and restructuring of the portfolio.

HAPPY INVESTING.....

 

 

Sectoral Shifts- The Unspoken Truth of Making Money....

 

"Those who cannot change their minds cannot change anything."

                                                                - George Bernard Shaw..

This blog is dedicated to all, but specifically to those who are using the basic tools of fundamentals and technical analysis in the market and still not getting desired returns from the stock market. 

In last few blogs, we noticed the volatility of the stock market and how big players / smart money playing the role in roller coaster ride of stock market, creating the fear factor in retail investors. In the previous weekly options expiry of Nifty (every Thursday of the week), we saw index in the green but all the stocks were in the red. We also noticed that the Nifty is not letting go the important levels. Bulls and Bears are literally fighting to the death for the dominance on the market. In above all, how retail investors can save their own interest is the question as they have every right to protect their own profits in the zero sum game of the stock market. I can say the investor / trader who is experienced one, will not take the risk and will book the profits after they are reaching the desired profits or they must be using some technical parameters to decide the same. But how to maintain profits going and not losing to market volatility is what I am going to discuss in this blog.

The very basic important characteristic of the money is MONEY IS NEVER STAGNANT. Money keeps changing the direction with the opportunities in the market, then be it on stock level or industry level or sector level or asset level or at country level. Money always keep moving on DAILY basis. We can closely monitor the movements of the money to make money in the stock market, and believe me you will never get disappointed by doing so. 

I am personally tracking the sectoral movements of the FPIs since few years now, the movements not only helps in investing in right direction but also suggests entry and exits of the stocks. To begin with let's see below the sectors and the percentage allocation of each sector in Nifty 50, the data is as on last trading day of previous month.

source: www.nseindia.com.

This information is very generic and most of the retail traders/ investors knows the above figure. But what most of them misses out is the percentage allocations in the above figure along with the sub sectors, they keep changing every fortnightly and NSE publish them on monthly basis. Even sectoral change data of FPIs are getting published on fortnightly basis, when the shifts are happening on daily basis. There are few sites which provides that data on subscribing to the site but I will not mention anything here as I am not promoting anything. 

Lets see the publically available previous data from NSDL site which shows the fortnightly sectoral shifts in the stock market. 

                                                                 Table 1.  Source: NSDL

I have highlighted few rows as I want to give the data points on the selected sectors. If you observed closely, the Green and Red highlighted sectors are outliers while orange is nominal but interesting data.

Considering the highest growth in AUC within fortnight, in the period of 15th Jan 2024 to 31st Jan 2024  FPIs 6% of overall distribution goes to Telecommunication sector. Correlating this data in the market cap wise stocks of telecommunication sector, let see below table:

                                                              

                                                                            Table 2.
 

In above table I have mentioned the prices after the data was published on NSDL sites. Above data explains all. With the volatility in the market this sector has shown the promising growth to depend on. 

Considering the second best sector which is Oil & Gas, data shows similar behaviour. 

                                                                            Table 3.

The most negative sector for the mentioned period was Media entertainment & Publications where FPIs reduced the funds by almost 15%. The same is replicating in the stocks.

                                                                            Table 4. 

We can clearly see that top market caps from the sectors are reciprocating to negativity. 

The Forest material sector is the one where we can say that there might be ongoing sectoral shift, for that I will share the extra data for the sector from my records. 

Table 5.

Clearly from Table 1 we can see that FPIs are positive by 2% but table 5 shows complete negativity. 

Below table shows that forest material sector in last 6 months received around 11% of FPIs moneyflow while the last fortnight suggests the sector wide negativity. 

From the above data, the signals are pretty clear. One who is depend on Fundamentals and Technical analysis will definitely gets the aid of this data to take the necessary calls. 

The above data once again proves that not just stocks but whole sectors dances on the tune of FPIs.

That is it for this blog, I hope you all have got little different insight from above data.

Open to every single feedback, critics, suggestions for the above data, please put them in the comments. Let's grow together......

Disclaimer: 

1. This data is for your information only. I am not recommending any transaction in any segment of the Stock Market here. 

2. The above stocks are selected on the basis of their market capitalization in their respective segment only. Kindly do not take any position based on any of the above shared data. Kindly do your own analysis and consult your financial advisor. 

3. The data mentioned are available publically, you can cross check on your own. 

4. These are all personal readings and observations based on the personal data records, I may be completely wrong on above data.

MUTATIO IN DOMINATIONE in Indian stock Market?

Hi All, 

I am sharing the blog after almost 6 Months. I was forced by data to write the blog, specially the volatility.

All those who are traders knows that there is only one true god of the market VOLATILITY, the trader who understand the volatility are the those 10% traders who make the money in the stock market. SEBI made sure that everyone focuses on 90 % of the failed traders with very great intention to protect the money of retail investors. Now a days we see the disclaimer after opening our any trading platforms. 

Concept of volatility is the most complex parameter in the stock market followed by liquidity. I am not writing any of the topic in details but here my intention will be to touch upon the data points which suggests the market movements beyond the conventional fundamental and technical study of the market. In this blog I will try to cover the dynamics of the current Indian stock market with few data points.

We all know, that there are 4 main players of the stock market, I have mentioned in my previous blogs also. They are FPIs, DIIs, Prop Desk, Clients (Retail Investors). We will understand the assets under each of them with the help of following table.

source: NSDL, FPI monitor, category wise AUC data. 

The above data table gives the allocation of the all the players in the Indian Equity market. Among them you can clearly make out who is the boss in the India Stock market. Here I will not give the categorisation, as you all readers can figure that out.

Another data suggests that FPIs holds 21% of overall holdings in the companies which makes NIFTY 500 while DIIs hold 14% all all shares in holdings. 

These figures leads to another question that if the FPIs are only controlling the market then now a days, how come the volatility has risen to highest level? I would like to give the honest answer based on the data I gather on daily basis by tracking the big players movement in the market. This conclusion of mine can be completely wrong but yes there is bright chance that the conclusion is correct based on data points given below.

Among the FPIs, I am presenting top 10 countries with asset under custody (only equity), the data is for Dec 23 and Nov 23. Latest data for Jan 24 is not yet available. 

              Source: NSDL, Countrywise AUC data.

Referring the above table we can clearly see the US FPIs are holding the highest assets under their custody, that means AUC USA= 2.85 X (AUC of Luxembourg+AUC of Singapore) who are 2nd and 3rd highest asset holder under their custody.

In my view, Singapore, luxembourg, Japan FPIs are SUPER bullish on the Indian Stock market along with others. US FPIs are also showing that they are positive on Indian market, but now they hold more power to control the Indian stock market, as SEBI has removed the restrictions on SHORT positions in the market. It has been observed in the past that DIIs are the bulls while specifically US FPIs are the big bears of the market. This time singapore, luxemburg, Japan FPIs along with other fpis also have joined BULLs gang, cornering US FPIs to counter the game of shorts they play in consolidation phase of the market. Past records shows that market has showed sideways moves before central elections. 

Considering that very same thing big players can only make the profits by shorting the market in Futures and hedging it with CASH. So we are observing the following data of FUTURE POSITIONS of the big players. 

                                               Source: www.nseindia.com

The above data suggests that FIIs are currently carrying 1,44,454 Future Index short positions while only 69,557 Future Index long positions. Surprisingly DIIs too are carrying 90258 Future index Short positions and only 56219 Future index long positions but in my opinion they are hedge for the tremendous cash buying they are doing in the market currently.

By just shorting the futures index, can US FPIs pull down the market against 3 other big players? Especially they know the INDIA GROWTH Story? 

:-Yes, they can do so by selling in CASH market whenever is required. 

For last calendar year, FIIs are net sellers in cash segment with selling of -43,757.2 INR Crores while the whole credit goes to Diis for their net buying in cash segment with buying of 1,36,152 INR Crores. The selling of Fiis is not at all worrisome as it is well within the limits of consolidation state of the market.

For this calendar year, Fiis are already negative with -35977.87 INR Crores and Diis are positive  with 26743.63 INR Crores, this data is for Jan 2024 only. 

Considering the data above, I can say that there is well expected TUG OF WAR in Indian stock market before elections, which gives the reason for High Volatility in the market. Indian stock market since March 2020, when Nifty touched 7500, has not seen the negativity and Index has grown almost 3 times in last 4 years. Macro economically India Story still has gas left, but one way up market is always alarming. Taking caution in these situations is never harmful.

The sharp moves in the market currently covering 200-400 points on Nifty in single trading session is indicator that match between big players is for domination on Indian equity market. This market is showing the deadly mood swings even in Intraday covering 60 to 100 points in just 5 minutes, which previously was a day movement. 

With this I will conclude today's topic that, small investors/ traders like you and me should follow the strict rule of profit booking and stop losses in current market. It is not wise to have FOMO in this current market. I am not saying that market can turn super bullish or super bearish but It will be welcoming move if the market shows healthy dip. Which eventually may suggests consolidation phase for a while. 

Open to all the suggestions/ Critics/ Praising to this information. Kindly share your thoughts in comment section.

DISCLAIMER: All the data given above is available in public domain, I have mentioned the respective source of the data. This is personal opinion based on data records which I maintain. This information is strictly for your information only. There is no suggestion of any transaction in any segment of the market.