Indian Stock Market and Mutual Funds

thelamar said:
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What was your rationale for selling Nifty futures and expecting a 2% correction next week? Are you tracking FIIs/DII activity, open interest, or basing this trade on fundamental/technical analysis? Since you’ve already sold futures, I assume you’ve done your analysis. If you sold 2 lots, as your target suggests a 40K profit on a 2% fall, do you have a stop loss in mind? Are you hedging or holding the position naked? I did a small analysis on the daily timeframe, though it’s not my usual timeframe, but sharing it here in case it helps
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I saw the move as a pullback not as a bullish reversal , that was the only logic and it's a very common pattern.
 

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Markets don't care about analysis and these patterns work in probability so pattern failure will be common.
If one is trading, then your plan should already be tested and set. And you should know when to exit, whether in loss or profit.
Other people's view does not matter. Just take the trade and manage it and repeat.

Above can be a pullback short, or looking at the short term momentum ( bounce wasn't that weak), it could be a pullback long in lower timeframe too.
Either could win and both could be good trades in 2 different systems.
 
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the beauty of volatile market is it falls and rises quickly , if you have risk capacity than put good ammount on shares which toggle alot something like good small caps or midcaps ,they will generate lots of wealth but the risk appetite is invovled
 
Emperor said:
what it mean in simple language?
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Few of my guesses:
They are keeping more cash to purchase stocks when markets are down.
They sensed market is nearing high earlier.
When market recover, such AUMs have more probability to do better with their cash reserves.

Note that these are my guesses on probabilities.
 
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thelamar said:
there are chances they may never recover or take longer than expected time
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That's true for individual stocks, not the market as a whole. The markets will recover, be it small cap or large cap. If something so serious happens that small caps as a whole never recover, then large caps aren't recovering either
 
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gourav said:
That's true for individual stocks, not the market as a whole. The markets will recover, be it small cap or large cap. If something so serious happens that small caps as a whole never recover, then large caps aren't recovering either
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It was referring to small cap stocks only, not indices. That being said, the market you’re referring to will definitely recover, but that does not guarantee that small cap stocks will recover to the same extent. For example, most small-cap stocks behave like OTM options, when the market goes up, they may also rise, but not by much. However, when the market falls, they tend to drop even harder.
Small cap stocks are more volatile compared to mid and large cap stocks due to their weaker fundamentals, lower liquidity, and limited institutional backing. They fall even harder during market falls because they are more sensitive to market sentiment and economic conditions. There’s a reason they’re called "small caps" they typically have smaller balance sheets, higher debt ratios, and are often the last choice for cautious investors. When the market falls, small cap stocks face the highest selling pressure, which causes them to drop even further.
 
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