Short-covering fires up Tata Steel stock
A FRENETIC bout of short-covering fired up Tata Steel shares over 6% to Rs 584.90 on Wednesday. Many traders and a quite a few hedge funds are said to have gone ‘short’ on the stock, anticipating weak quarterly numbers. But with its performance turning out to be better than expected, these players had to cover up their positions. Among those caught on the wrong foot included a market operator who shares his first name with the Union agriculture minister.
My Comments:
This is what I read in ET today.......in "Heard on the street section"......
Now if we try to analyse what is going on our brouses then it can be understood that Hedge Funds shorted the market very heavily and under that news smart chartist started sending SMS etc all around saying that market will tank and will go below 3000 nifty giving all resistances and waves and legs and morning start or gap filling or head and shoulder(Shampoo...Lol)....then inverse Head and Shoulder....and then Doji, the evening star .....etc etc........
Well, what one need to understand here is how that was going to be possible?I donno, but they give examples of Greece and some Europeans coumtries default as reason for market to fall....and that we believe it and take decision on that view and that I find it the most atrocious thinking taking place in very well learned community of investors who are Chartered Accountants,MBA's, IIM's, IIT's, Doctors, Engineers,Economist pundits and likes.......
Is Greece or any European country is bigger then USA?That is a very simple question one need to ask himself?If it is not then try to compare how big can be the default amt?Can it be bigger then USA subprime Mortagage crisis?Can it be bigger then Lehman default or AIG .....
But the mian thing people have in mind is , better safe then sorry and they sells everything......that is good....but when they start thinking of something out of world like say hearing Nifty to again touch 3000 and then believing it.....that is the worst part coming from these well learned community....
If these people are going to act as herd mentality then I think there will only be One Warren Buffet, One Rakesh Jhunjhunwala or One Peter Lynch.....FOREVER....
The above news clearly states that Hedge Funds short sold Tisco in big way thinking that Tisco will give bad results but they forget that Indian growth is due to domestic demand .Tisco gave good numbers and they started covering Tisco and Tisco Shoots up......it now becomes very clear that the person at the helm of affiars at hedge funds do not know anything about Indian Market and Indian economy.....and as the text rightly pointed a name of a Bear Operator......Who is a well known figure among market community who comes or welcomed to speak everynow and then negative about market.....should be the expert of these hedge funds and seems that he is neither doing good for them nor for his clients......but the part that puzzles me is why these hedge funds still go on taking his advice ......I know he is an orator and speaks with such authority and confidence citing all reasons that anyone can get carried away...and when in recent past e.g.in 2008 he proved correct....he must be a much sought after personality by Hedge Funds and FII's.....
I have written in recent past that I do not see even 12k in sensex and that too giving reasons for that.But who will believe me?I have no big office nor people working under me, nor a big acadamic qualification .....like MBA or CA or IIM..nor I am a big name in stock market.....
And last but not the least, while going through the ET , I just read that ,Billionaire George Soros investment in gold more than doubled in Q4 as central banks around the world, including those in China and India, sought safety in the yellow metal .....
he is the same person who gave a call just few days back that Gold is now in an ultimate bubble territory....
http://www.telegraph.co.uk/finance/financetopics/davos/7085504/Davos-2010-George-Soros-warns-gold-is-now-the-ultimate-bubble.html
and this is the link to read it......Imagine whom to believe and whom not to.....
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