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Tuesday, May 15, 2012

ARE MARKETS FOR FEW !!!


Hi friends,
I got some alerting data on Markets - which are on data dated 2010 - there were 31 lakhs registered customers/investors on NSE from which only 2 lakhs (6 %) of these had done 90 % of the total volume on NSE. Looking minutely at this data we get that - 50 % of the exchange turnover was done by only 450 customers, 60 % of the exchange turnover was done by only 1500 customers, 70 % of the exchange turnover was done by only 8700 customers, and 80 % of the exchange turnover was done by only 41,000 customers.

Let’s have a look at DERIVATIVES - which is shocking that only 3.77 % dominates nearly 90 % of total F&O Turnover. There were 5.5 lakhs customers who do DERIVATIVES trading from which only 3.77 % controls nearly 90 % of the total derivatives turnover. THIS IS DISGUSTING !!!

After knowing that only a few runs the cash & F&O segment more shocking is that only a few scrips are concentrated for the trading, there were only 10 scrips which contributed 24 % of the Cash segment volume, whereas only 10 scrips contributed 38 % of total derivatives turnover.

WE SAY THAT OUR MARKETS HAVE MATURED ..IS THIS THE MATURITY ....ARE WE RUNNING MARKETS FOR FEW PEOPLE ...????
ARE THE NEWS FLOWS OR REPORTS TO FOOL INNOCENT INVESTOR WHO PUTS HIS HARD-EARNED MONEY...WHO'S GOING TO LOOK INTO THIS... I AM SURE THAT EXCHANGES & THE MARKET REGULATOR MUST BE HAVING FAR MORE DEEP DATA THAN THIS....AND THAT's THE REASON BUY FUNDAMENTALLY STRONG COMPANIES..WHICH DEFINITELY GIVES YOU GREAT RETURNS IN THE LONG RUN !!!
WE NEED TO BE ALERT.....

READ HERE TO KNOW MORE ON LONG TERM INVESTING - Click 
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6 comments:

  1. sanjayMay 15, 2012 at 1:36 PM

    Good article Bhavikk. I fully understand that markets are heavily rigged. Only with good companies and long term can someone make consistent profits.

    ReplyDelete
  2. Commodity ExchangeMay 15, 2012 at 2:59 PM

    Best investment is very important in every ones life, everyone wants to make more money for that he invest his hard earned money in stocks and commodities. But only few peoples are making good money from these markets, but how ? Experts Guidance, which plays very important role while investing. Always invest your money in well known & strong org.

    ReplyDelete
  3. Ishan ParekhMay 16, 2012 at 2:01 PM

    Hi Bhavikk,
    This is surely a pretty interesting data and am sure it must not be openly available to everyone.

    If you can share its link it will be great.

    If you can further throw some light on the 10 scrips which contributed 24 % of Cash segment volume and those 10 scrips which contributed 38 % of total derivatives turnover; it will be great fun and appreciable, as always!!

    Bhavikk, I need your valuable opinion on specialty restaurants ipo as well; I remember your mcx blog fetched me very good profits!!!

    I know am asking a lot but cant help it!!

    Thank s lot,
    Ishan Parekh

    ReplyDelete
  4. BhavikkshahMay 16, 2012 at 3:58 PM

    Hi Ishan
    Thanks for visiting and commenting on my blog..I am extremely sorry dear that I cannot drop in the link as it does not have any..and for the stocks it keeps on changing according to their corporate developments.

    ON Specialty Restaurants Ipo -
    Its EPS as on Dec11 was Rs.5.20 & Networth was Rs.113cr which will raise to Rs.295cr after the issue.
    On upper band its P/E comes to 29.8 and 28.07 on lower band, Which is quite expensive..Listing gains can be limited..So avoid from my side.

    Do Visit again
    Regards
    Bhavikk shah

    ReplyDelete
  5. Ishan ParekhMay 17, 2012 at 3:41 PM

    Thank you Bhavikk....

    If I want to re-enter mcx, at what levels should I buy, for a period of 2-3years? Is it a good idea to do an SIP of mcx?

    Thank you..
    Happy investing!!
    Ishan Parekh

    ReplyDelete
  6. BhavikkshahMay 17, 2012 at 4:19 PM

    HI Ishan
    It nice to see you again..
    In my view you can enter in MCX at any level, and its good idea to have SIP type of strategy in MCX but your every purchases should have a STRICT STOP LOSS of 8%, looking at the current market situation, and the beating of MCX I see it bouncing back to 1000 levels..I see limited downside from here on MCX on fundamental basis..
    I dont see charts so cant say what charts indicate but on fundamental side it should bounce and will very soon...

    ISHAN
    Do email me your id at montyuu@yahoo.com for free update of my blog..

    DO VISIT AGAIN
    REGARDS
    BHAVIKK SHAH

    ReplyDelete