Skip to main content

Nifty Signals Software for Buy Sell Signals for Day Trading

By


INDIAN STOCK MARKETS &INVESTMENT LIMIT FOR FII
In Indian Stock Market, Foreign Institutional Investor (FII) is allowed to invest in the primary and secondary capital markets through the portfolio investment scheme (PIS).
Under this scheme, FIIs can acquire share / debentures of Indian companies through the stock exchanges in India.  The ceiling for overall investment for FIIs is 24 percent of the paid up capital of the Indian company.  The limit is 20 percent of the paid up capital in case of public sector banks, including the State Bank of India, whose huge selling by FIIs brought the share to below 2000 level in February and March series.  The besttrading software analyses these aberration in FIIs inflow or outflow resulting in such a sharp reaction in even BULL MARKET.
THE CUT-OFF
The ceiling of 24 per cent for FII investment can be raised up to sectoral cap / statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect. And the ceiling of 10 per cent for NRIs / PIOs can be raised to 24 per cent subject to the approval of the general body of the company passing a resolution to that effect.  The ceiling for FIIs is independent of the ceiling of 10 / 24 per cent for NRIs / PIOs.
The Reserve Bank of India (RBI) monitors the ceilings on FII / NRI / PIO investment in Indian companies on a daily basis.  Fore effective monitoring of foreign investment ceiling limits, The RBI has fixed cut-off points that are two percentage points lower than the actual ceilings.  The Intraday tradingsoftware keeps track of these investments on daily basis too. It helps analyse the mood of FIIs towards Indian stock market. 
RBI’s STANDING ACTION
Once the aggregate net purchase of equity shares of the company by FIIs / NRI / PIO reach the cut-off point, which is 2 % below, the overall limit, the RBI cautions all designated bank branches so as not to purchase any more equity shares of the respective company on behalf of FII / NRI / PIO without prior approval of the RBI.  The link offices are then required to intimate the RBI about the total number and value of equity share /convertible debentures of the company they propose to buy on behalf of FII / NRI / PIO.  On receipt of such proposals, the RBI gives clearance on a first come first basis  till such investments in the companies reach 10 / 24 / 30 / 40 / 49  per cent limit or the sectoral caps / statutory  ceilings as applicable.  On reaching the aggregate ceiling limit, the RBI advises all designated bank branches to stop purchases on behalf of their FII / NRI / PIO clients.  The RBI also informs the general public about the ‘caution’ and ‘stop purchase’ in these companies through press release.
The intraday traders cautiously watch the moves of FII and go with their flow.  The activity of FII can also be seen majorly in NIFTY FUTURE OR NIFTY OPTION trade which shows sudden spur and nose-dive reactions.
Visit Us : www.technotrades.biz
Contact No.+91-9958406102

Comments

Post a Comment

Popular posts from this blog

TRADE EXIT STARTEGY IN DAY TRADING

By
My Exit Beliefs In part one of this article, we considered a few questions: Should we use a tight stop loss to cut any losses quickly, or a wide stop loss to allow some room to move? How quickly should we move the stop loss to breakeven ? Should we take profits at a target, or should we let the profits run, perhaps trailing a stop behind the price? In attempting to answer these questions we looked at a number of charts, we chose entry criteria, and then looked at possible options for the exit. And this is what we discovered: Firstly, in each case, the profit or loss taken out of the trade was more a result of our chosen stop and exit method, not our entry. For the same entry, there were numerous possible exits, some profitable, some breakeven and some at a loss. And secondly, we cannot know, except with hindsight, what will be the most profitable exit strategy for that particular trade. In other words - the exit is more important than the entry. The exit has more bearing on w...
Post a Comment
Read more

Intraday Software Using Trading Strategy For Generating Buy Sell Auto Signals

By
NIFTY RANGEBOUND—STOCK MARKET DIRECTIONLESS The stock market appears to halt at a tri-junction with no absolute clue about where to move.   CNX IT, however did manage to bounce back for two days but it is clearly looking like more of an bounce back when intraday indicators were slightly oversold and the index kind of manage to hold on for couple of days.   It recorded about 100 to 150 pointy kind of a bounce back.   The chart analysis indicates some crucial movement from here.   The nifty future might see a upward swing after a sharp correction.         Notwithstanding the fact, this kind of a decline was not expected.   For Infosys, 2150 is an important weekly closing pivot that could be a good target for it.   In fact, that is something which Intradaytrading software looks for making a pretty sure intraday trade in the stock.         The technical analysis of the ni...
Post a Comment
Read more