Skip to main content

Nifty Signals Software for Buy Sell Signals for Day Trading



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.
Contact No.+91-9958406102

Comments

Popular posts from this blog

COMMODITY UPDATES 8TH AUG

August 8, 2012 News Highlights:  The U.S. API Weekly Crude Stock fell to a seasonally adjusted annual rate of -5.35M, from -11.61M in the preceding month in turn indicating that demand for the fuel in US, world’s largest consumer of crude oil is strong.  Crude oil output from Organization of Petroleum Exporting Countries (OPEC) fell 270,000 barrels per day (bpd) in July to 31.45 million bpd from 31.72 mbpd in June, raising supply concerns in the near future.  The Federal Ministry of Economy and Technology said that German manufacturing orders declined more than expected by 1.7 percent month-on-month in June against expectations of a drop of 0.8 percent which in turn curbed gains in copper by dampening demand outlook for industrial metal.  The European Central Bank is expected to start unlimited buying of stricken member states' bonds to drive down their crippling borrowing costs and shore up its faltering economy which in turn improved demand prospects for copper and c

Nifty futures test 5000 mark; Asian indices slide sharply by Venky Vembu May 7, 2012

Hong Kong : The blood has barely been wiped off the trading floors after last week’s tumbles on the Indian markets. But already, markets are off to another bloody start to the week. Nifty futures are again sharply down in early trades on Monday, testing the 5000 mark on very weak global cues after election results in  Greece  and France over the weekend, and tepid US employment data on Friday, busted investor sentiment. (More details  here .) Listen to market audio: All across the region, trading boards are awash in red. As at 7.30 am IST, most of the indices are down in excess of 2 percent. Tokyo, returning from a holiday, is down the hardest, playing catch-up with last week’s falls: it’s now down in excess of 2.5 percent. Hong Kong is down about 2 percent, and Sydney about 1.5 percent. Shanghai is faring the best of the lot, down only about 0.2 percent. We’re probably looking at sharp losses when markets open in Mumbai today. Reuters Nifty futures are down nearly 1.5

FII AND INDIAN STOCK MARKET

In fact, Foreign Institutional Investor ( FII)  is allowed to enter into INDIA only through stock markets either in the form of equity of debt.  Thus it makes an impact on the rise or fall of Sensex or nifty, since FII is allowed to be purchased or sold daily.  The daily transaction of FII is the reason behind the volatility in the stock markets and has strong impact on the various macro-economic variables and the economy as a whole.  The impact of variation in inward or outward flow of FII can be simply exhibited in NIFTY LIVE behavior pattern.  The impact of FII can be best interpreted by explaining the recent behavior of market.  The second half of NIFTY FUTURE February series showed a well deserved consolidation after a long BULL-MARKET.  However, NIFTY FUTURE March series ended up with SENSEX slipping below psychological mark of 18000.  These all epitomizes the immense impact of FII flow in the Indian Stock Market.  Intraday traders do take care of FII activity meticulously.