Thursday, December 17, 2009

Markets at 9

One nice aspct of 'breaking news' is the relief it provides to TV channels and the viewers of such channels. The channels can start talking about such 'news' and viewers have something different to watch.

So also with 'Markets at Nine'. I had gone to the airport, returned back around 9:30 PM and opened my email. There was an email from NSE saying market hours will change to 9 AM. I called up my colleague in Chandigarh. Is this correct? Yes, he said, that's what is going on in CNBC for the last three hours.

What is done is done. This decision is unlikely to be rolled back, so we have to accept it. The NSE can add value to extended market timings by adding new instruments for trading - The Dollar Index, Nikkei, Singapore STI, FTSE, DAX, CAC, Kospi ..... etc. It is fairly easy to do this: ask a company to create an ETF for say middle east indices. Then ask SEBI permission to offer futures on this ETF, and, we can begin derivatives trading.

Traders should guard against 'fatigue'. Too much of a good thing can hurt. So also of too much market interaction. Day traders should consider time based strategies - Trade in the open hours only, OR, trade only before the close, and so on.

4 comments:

Krishna said...

Sir when the nifty touched 4550 in november you had cautioned your readers with a well explained chart, about the level when it was below 4800 levels itself.Bank nifty is down 10% while nifty is down about 4% from recent peak.Do u think it will continue to underperform while the nifty stays rangebound.Is any such dangerous downside visible to you?Finally Which and When will be a good entry point for a positional trade?

Janak said...

Greetings. Why everyone (I mean analysts) are so negative these days? Read CNBC headlines (aka Shankar Sharma, Mobius etc.) - they are frightening the investors with their doomsday prediction. WHY? WHY? Can't we be positive.

And Sir, you - a few days ago - predicted that RANBAXY is facing a steep correction - since then, stock is moving UPWARD only. - ?????

Paul said...

Sir,

Here is a quote for your comments...

"It’s been said that the “Big Boys” are going to try to hold the market steady right here until the end of 2009 so they can send out nice account statements to their clients, so no big fund is willing to rock the boat, so to speak.

Corey Rosenbloom, CMT
Afraid to Trade.com

http://blog.afraidtotrade.com/a-year-to-date-look-volume-and-volatility-in-the-sp500/

My Q is - are the 'Big Boys' here of similar opinion and will it influence or markets?

Regards

GPP

men said...

Mr. Sudarshan, at this moment what should a long term investor do? some one who has just held on to shares and never traded/sold?
Secondly, some stocks are <50 dam and just above 200 dma, as a trading rule in general what is to be done, how does one identify an entry point here or is SIP the best way out, the view here is over the next 2-3 years for example RIL?
Finally what return one should consider good from April' 09 to March' 2010, this is just to gauge how one has done.
Thanks,