Is there a method to the Dalal Street madness?

I agree with you sir. The people are not seeing the real facts and analyse the thing they juat belive what is told to them.

It is like a durnkard walking........there is no logic or basis for fall or raise in the sensex

Of course FII are strong market players and the market always move in tandem.

 But heavy selling by them can seriously affect the country’s economic balance. A developing nation like ours should always be careful about this when going for heavy foreign exposure in balance sheet.

A large chunk of turnover in Dalal street comes from FIIs, then the FIs and Mutual Funds and then HNIs. These investments are dictating the rates of stocks in Dala street. I hope there are no methods available for a common investor to track this madness. Of course, it can't be called as a madness, since it intricately depends on research and analysis.

Here originates the fundamental Investment. You adapt your own philosophy of investing and follow it, in order to 'tame' the Bulls or Bears of dalal street. Your philosophy may follow long term, medium term, short term strategies, value investing, IPO investment, Auction trading, future and options, etc etc. Those who do not have patience or time to follow regularly, will follow mutual fund route or portfolio management route. Perhaps these are the available methods available to tackle the so called 'madness of Dalal street'.

I agree with Mathew. The market now is based on how the FII's buy and sell. So they buy and sell in different places accordingly redeploying in different markets.

I feel the state of the market now is based on how the FII's buy and sell. Their operation depends on allocation of resources on an international portfolio. Their decisions are made on thresholds dictated by their policies and software. So they buy and sell in different places accordingly redeploying in different markdts. So it can cause confusion somethimes.

The market is on a flimsy ground. There is no firmness at all as everyone is sitting on the fence. Everyone wants to buy and sell simultaneously. That is why there is so much volatility. Investors are better off sticking to their investment decisions, rather than changing them according to market mood. I always feel we make money in this market only on our conviction, not by following people's recommendations blindly.