An observable trend in 2024 in particular is FII selling. Especially the selling in October, November and December. There has also been FII selling in earlier months of 2024 as well. Analysts and expert attribute the selling to overvaluation. The impact of the selling is evident in NIFTY 50 – A fall of 2000 odd points. NIFTY 50 from its highs of 26,000 to 24,000 in December.
An observable trend throughout the year is FII selling coincides with events which happen across the world. DII buying and selling is influenced by company reporting to the exchanges. Not sure how the news and reports are quantified and the valuations are updated so quickly and accurately to make a BUY or SELL decision.
Another observation in the news is the free use of the terms investors and traders. If the above is a repetition, then it is a strategy. Buy continuously for a time period, create a trend, raise the prices and then sell. Not sure of any sound investing lesson to learn from this strategy.
Interesting question is why buy an overvalued company / market and sell the same stating the same reason?
Viswanath Nishtala's Blog 