Aug 30, 2016

Mark Douglas: 7 Keys to Trading in the Zone

Mark Douglas: 7 Keys to Trading in the Zone

“I am a consistent winner because:

1. I objectively define my edges.

2. I predefine the risk of every trade.

3. I completely accept the risk or I am willing to let go of the trade.

4. I act on my edges without reservation or hesitation.

5. I pay myself as the market makes money available to me.

6. I continually monitor my susceptibility for making errors.

7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.”

Aug 27, 2016

DII (Mutual Funds etc.) Ownership In Stocks At Six Year High

The shareholding of domestic institutional investors (mutual funds, insurance companies etc.) (DIIs) in listed companies has risen to a six-year high, following an increase of 10 per cent in the value of their holdings, despite flat markets.

At the end of the June quarter, DII shareholding in National Stock Exchange-listed companies was 11.7 per cent, up nearly 100 basis points in 12 months, from data compiled by Prime Database. The value of their holdings touched a record high of Rs 11.74 lakh crore, a 12 per cent increase over the Rs 10.5 lakh crore at the end of the June 2015 quarter. The BSE 500 index remained flat in this period. 
By stock exchange data, DIIs had pumped nearly Rs 40,000 crore in the Indian markets in the four quarters ending June 2016. 
DIIs comprise domestic mutual funds, insurance companies and pension funds. The increase in DII ownership and value of their holdings is a positive sign for the Indian markets, largely dependent on foreign institutional investors (FIIs). 
The value of the latter FII holdings at the end of June was almost double that of DIIs, at Rs 20.1 crore. Their ownership stood at 20.1 per cent, making them the country’s largest non-promoter stakeholders. Within DIIs, state-owned Life Insurance Corporation of India (LIC) is one of the biggest investors. At the end of June, the value of its holding was Rs 4.6 lakh crore.

Some of the companies with high DII shareholding are Balmer Lawrie & Co (72.8 per cent), Gammon India (66.3), Consolidated Construction Consortium (56.4), IVRCL (52.6) and Monnet Ispat & Energy (50.1). During the June quarter, Bombay Rayon saw the highest increases in DII shareholding in percentage points, at 26.3. Sakthi Sugars (18.9 percentage point increase) and Rainbow Papers (11.45) were other companies which saw substantial increase.

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Aug 26, 2016

Rakesh Jhunjhunwala’s portfolio grows 5.5 times in seven years, Some of the details of his stock holding and how it pared

Rakesh Jhunjhunwala’s portfolio grows 5.5 times in seven years, Some of the details of his stock holding and how it pared 
Top Individual Investors In India/Top Individual Investors In Indian Stock Markets
Rakesh Jhunjhunwala’s Stock Holdings/
Big Bull Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala held equities worth Rs 8,900 crore and remained the biggest 'individual public shareholders' on the Dalal Street, June quarter shareholding data showed.
The Jhunjhunwala couple, which owns shares in IT firm AptechBSE -3.12 %, drugmakers Aurobindo PharmaBSE 0.17 % and LupinBSE 0.45 % and banking and financial firms such as Deewan Housing and Karur Vysya BankBSE -0.43 %, among others, have seen the value of their cumulative  ..
Companies where the combined stakeholding of Jhunjhunwala and his better half has gone up include Tata MotorsBSE -1.01 % (DVR) (from nil a year ago to 3.43 per cent in Q1FY17), Intellect Design Arena (3.74 per cent to 5.94 per cent) and Escorts (from 8.14 per cent to 10.18 per cent).

The Jhunjhunwalas raised stake in Delta CorpBSE -0.24 % to 9.32 per cent in Q1 of FY17 from 7.80 per cent in Q1 of FY16. They also increased stake in Agro Tech Foods to 7.66 per cent at the end of June quarter from 6.88 per cent at the end of Q1 FY16.
However, the duo exited McNally Bharat EngineeringBSE 2.77 % and PolarisBSE -0.86 % Consultancy, the PRIME Database study revealed.
The Jhunjhunwalas owned 9.85 per cent stake in McNally BharatBSE 2.77 % and 4.74 per cent in Polaris Consulting at the end of Q1FY16.
As per norms, details of less than 1 per cent shareholding is not required to be published. The couple cut stake in VIP IndustriesBSE 0.96 % from 7.05 per cent to 3.69 per cent, Karur Vysya Bank from 2.9 per cent to 1.92 per cent and Autoline IndustriesBSE -0.74 % from 10.14 per cent to 9.46 per cent in the one year period.

The retail holding went up in 767 NSE-listed companies in last one year till the end of Q1FY17. The average increase in stock prices of these companies in the same period was 20 per cent.
On the flip side, share prices of 671 companies where retail holding fell in last one year have risen by 47 per cent on an average.
"This validates the often-used phrase that retail investors buy at peak and sell at lows," said Pranav Haldea, Managing Director at PRIME Database.
Retail holding in terms of value hit an all-time high of 8.68 per cent in June quarter.

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Aug 6, 2016

SEBI proposes new framework for algo trading, co-location, Good news for retail participants and importantly retail day traders

algo trading India, Automated trading India, Algo trading BSE NSE 

SEBI proposes new framework for algo trading, co-location =
To stop inequitable trading access to the exchanges, markets regulator Sebi today proposed a new framework for super-fast algorithmic trading and co-location facility, including by suggesting 'speed bumps' and separate queues for algo and non-algo trades.

To stop inequitable trading access to the exchanges, markets regulator SEBI today proposed a new framework for super-fast algorithmic trading and co-location facility, including by suggesting 'speed bumps' and separate queues for algo and non-algo trades. 
Algorithmic trading or 'algo' in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade, while co-location involves setting up servers on the exchange premises. 
The Securities and Exchange Board of India (SEBI) has proposed to introduce resting time for order, random delays and random speed bumps, separate queues for co-location and non-co-location orders for strengthening the regulatory framework for algo trading and Co-location facility. 
The regulators across the world are looking to find an effective solution for this. SEBI has sought public comments on the proposal till August 31 and final guidelines would be put in place after taking into account views of all the stakeholders. 
The speed bump mechanism involves introduction of randomised order processing delay of few milliseconds to orders. 
The move is expected "to discourage latency sensitive strategies as such delays would affect HFT (High Frequency Trade) but would not deter non-algo order flow for which delay in milliseconds is insignificant," SEBI said in a discussion paper. "The intent behind such mechanism is to nullify the latency advantage of co-located players to a large extent," it added. 
The regulator also plans to begin minimum resting time mechanism, wherein orders received by the stock exchange would not be allowed to be amended or cancelled before a specified amount of time -- 500 milliseconds is elapsed. 
Besides, it plans to eliminate 'fleeting orders' or orders that appear and then disappear within a short period of time. 
The regulator has proposed introduce separate queues and order-validation mechanism for co-lo orders and non-colo orders. "Orders from queues will be taken up in the order-book in round-robin fashion... the co-located participants would still be among the first to receive the market data feeds due to their proximity to the trading platforms of the exchange and this coupled with the capability to make trading decisions in fraction of seconds would still provide the co-located participants the ability to quickly react to such market data," SEBI noted.