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Friday, May 6, 2011

Market manipulation

...the signs are everywhere. Heres what the author writes :

" ....For the attention of SEBI: On 26th April 2011 there was a freak transaction in Nifty futures @ 5393.45, which is 400 points below MiniNifty low @ 5793. From that day onwards Nifty was closing in red for the last 9 days(longest losing streak ever) and now Nifty is approaching "that freak figure". Open Interest of Puts at strike price 5400 is the highest (5,401,300)today. Both these facts indicate that there was a concerted attempt to bring down Nifty to the desired levels by some of the BIG dealers, which is against the interest of common people. To safeguard the interests of retail investors SEBI should investigate the following points and take appropriate remedial measures.
1)How above mentioned transaction took place when there was lakhs of entries?
2)Whether there is any inbuilt in mechanism to prevent such erroneous transactions?
3)Who are the parties to that transaction ? Who(buyer or seller) entered that figure and who benefited. Volume of that transaction? Any action taken by NSE/SEBI.
4)What are the checks to be incorporated in trading software to prevent such transactions in future.
....."


No charts. But I think we should be touching 5400 levels by next week. 


2 comments:

  1. are you talking about May contracts?

    ReplyDelete
  2. I think so...I myself did not check it out ...but read somewhere that there was a FREAK Futures trade

    ReplyDelete