The Week Ahead, and Before

The last week was, well, volatile. Volumes were particularly low, and the rally of Friday did not have much to it than the gains. Provisional data released by NSE/BSE shows that FIIs were net sellers on the day the main index of the BSE, the Sensex, rose 290 points.

FII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
FII	04-Sep-2009	1912.07	2311.99	-399.92

Volumes traded by the Domestic Institutional Investors weren't very impressive either on Friday.

DII trading activity on NSE and BSE in Capital Market Segment(In Rs. Crores)
Category	Date	Buy Value	Sell Value	Net Value
DII	04-Sep-2009	986.9	992.25	-5.35

In the whole week, the scenario was as follows:

(Rs. crore)
	FII			DII
Trade Date	Buy	Sales	Net	Buy	Sales	Net
4/9/09	1,912.07	2,311.99	-399.92	986.90	992.25	-5.35
3/9/09	1,924.30	1,996.99	-72.69	1,381.35	998.86	382.49
2/9/09	1,525.10	2,213.41	-688.31	1,307.15	1,233.36	73.79
Sep, 09	7,805.68	9,602.54	-1,796.86	5,434.47	4,616.66	817.81

Friday's rally makes one think. Was it smart money pushing up the index, when the big players were actually net sellers? Or was there buying in the proper places that had outsmarted the selling in the proper places? Have a look at the charts:

The movement of the index was particular, the smart money coming in at around 12:10 and 2 pm. Whether there was smart money involved would be clear the next week. If the index rises further, there would be the implication that the game has changed, and a similar condition a la the post Election results bull run, would arise. In other words, very less volumes, very high gains. Some one would be missing the rally, and then buying not so cheap. Someone would be booking profits then and there would be a correction. Let's see what happens.