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The Indian stock market is heavily influenced by institutional investors. While Foreign Institutional Investors (FIIs) bring global capital, Domestic Institutional Investors (DIIs) act as a balancing force. Their daily trades often decide the direction of Nifty, Bank Nifty, and sectoral indices—especially during intraday trading.
👉 Example: An FII net buy of ₹3,000 crore in banking stocks can push Bank Nifty up by 2–3% in a single session.
👉 Example: If FIIs sell ₹5,000 crore, DIIs may buy ₹4,000 crore to stabilize markets, reducing intraday damage.
📌 Pro Tip: Always check daily FII/DII activity before planning your intraday trades.
👉 Download Swastika App for Real-Time FII/DII Data
📲 Start trading smarter with Swastika:
Q1. Do FIIs always control Indian markets?
Not always. DIIs and retail investors also balance markets, especially in volatile times.
Q2. Why do FIIs sell heavily sometimes?
Global factors like Fed rate hikes, rising USD, or geopolitical risks trigger exits.
Q3. Can DIIs fully offset FII selling?
Not fully, but they reduce extreme intraday falls by absorbing liquidity.
Q4. Should retail intraday traders blindly follow FII/DII moves?
No. Use FII/DII data as a sentiment indicator along with technical analysis.
FIIs and DIIs are the powerhouses of Indian stock market moves, especially intraday. While FIIs bring in global volatility, DIIs provide domestic strength. Tracking their activity is crucial for every trader who wants to stay ahead.
Algo trading, algorithmic trading, or automated trading is to trading that artificial intelligence is to computing: the next big thing. With the promise of being fast, accurate, and large; this blog discovers and discusses the unlimited opportunities and possibilities of what Swastika’s Algo Trading has to offer.
By definition, in Algo trading, computer-generated algorithms are used to execute trades, where machines oversee the tasks (called program sets) that would otherwise be done manually by a trader. In simplest words, Algo trading is a computer program that determines and executes the manual steps in trading as a defined set of instructions. These sets are notably based on timing, price, quantity, or any mathematical model. According to research by The Cost of Algorithmic Trading: A First Look at Comparative Performance, algorithmic trading is especially beneficial for large order sizes that may comprise as much as 10% of the overall trading volume.
In India, algorithmic trading is still less than 50%, and firms are relatively small in size. A significant amount of Algo-trading volumes is in pure arbitrage (trading between the National Stock Exchange or NSE and BSE, for instance).
But complex Algos will, at some point, take over the Indian stock market. Given the rapidly growing trend and demand of HFT and Algorithmic Trading in developing economies & emerging markets, there have been efforts by various exchanges to educate their members and develop the skill sets required for this technology-driven field.
Making the trade process automated helps in tracking even the smallest changes in price and execute the trades on-the-go, faster than the trader can. That helps in improving the order entry speed, diversifying trading systems by permitting the user to trade multiple accounts or various strategies at one time by optimizing the potential to spread risk over various instruments while creating a hedge against losing positions
Also, an algorithm such as ours is able to scan for trading opportunities across a range of markets, generate orders and monitor trades. Since a system can respond immediately to changing market conditions, our Algo trading systems are able to generate orders as soon as trade criteria are met.
If you are a Mid to Long-Term Investor, you can purchase stocks in bulk when you systematically wish to invest in the market with discrete, large-volume investments
If you are a Short-Term Trader, you can create liquidity and automated trading, it helps them to make the most of the automated trade execution
The algorithms also tend to have a short life span. As good as they can be for menial strategy implementation, the customizability is lost. The speed of order execution, an advantage in ordinary circumstances, can become a problem when several orders are executed simultaneously without human intervention. It is highly probable that the strategies formulated on paper may not turn out to be successful and effective during live trading. This is called over-optimization, wherein the trading plan becomes unreliable in live markets. Despite strategies being built on historical data, there is a large possibility of the strategy failing as soon as it goes live if the right methods are not employed! Not all strategies cannot be automated and converted into an algorithm. So, the use of such strategies is not possible in Algo trading.
As automated as Algo trading can be, it requires constant and consistent monitoring, so Algo trading platforms are not really the wealth-makers for you, but the team of experts that can help you make the most of it.
No human is better than a machine, and no machine is better than a machine. With that said, Swastika’s team of Algo trading experts will be your kingmaker, not just because of their expertise in the algorithm or their wealth-making ability for the past 27 years, but their commitment towards their promise of सर्वे भवन्तु धनिनः
It seems foolproof – buy calls when you’re bullish; buy puts when you’re bearish. You know how much you can lose from the moment you initiate the trade.
But, more than 75% of stocks trade sideways over the long haul. That means only a quarter of stocks make a noticeable move up or down in a given time frame. What do you need when you buy options? Movement!
Sellers, on the other hand, love “stuck” stocks. Trading ranges are profitable territory for sellers. Plus, they know how much they can WIN upfront because they hit their jackpot, the moment they make their trade.
If you have better things to do than hope the underlying stocks move enough to make your long options profitable, I’ve got five rules to help you sell options for profits.
Most buyers (even the seasoned ones) are prepared and expect to lose some of their money and are OK walking away with empty pockets. To start winning consistently, you must get out of the buyer mindset.
Sellers don’t play with Teen Patti Money or “risk capital.” That will get you blown out of the water, with no lifeboat to get back in to rescue yourself.
Your foundational portfolio is your starting point for making an income out of options. There will be stocks that you love, stocks you hate, and stocks you’ve owned for so long that you can’t bear to part with them.
The best of what you can make on these “money-hole” stocks to make them pay you for your patience … and to sell some puts on stocks you wouldn’t mind owning someday, for good measure.
It’s not about how much money you have — it’s about how you can use it to make how much money you want in any given month.
Whether you’re working with ₹25,000; ₹50,000; ₹1,00,000 or more, set a target for each month. 2% percent is very reasonable and translates to 24% a year. That’s better than the BSE, NSE, and MCX combined, most years!
With a ₹5,00,000 account, you need to make ₹10,000 a month to hit that 2% goal. Revise your goal a little higher, say to ₹15,000, to provide balance if any of your trades don’t work out.
Most buyers pick options that require a Herculean move from the stock to make them profitable. But those out-of-the-money option values plummet as expiration nears. When the clock runs out, there’s no earning back, that cash–time is the buyer’s mortal enemy.
Selling options that expire in a couple of weeks or, at most, a couple of months is a proven strategy that provides consistent returns. Best of all, you can repeat the profit cycle every week or month to meet or even exceed your income goals.
Selling options on slumping stocks is only part of the fun. You can also profit from directional moves. Unlike the traditional buyer, who needs a big, one-way move, sellers are uniquely positioned to profit from the movement in either direction.
Many “sleep and wake” stocks have excessively volatile option chains (like Citigroup (NYSE: C)). The higher the volatility, the bigger the premiums for option sellers. We always recommend options with some windows for space i.e. volatility in the 25-35 range.
To get the most lucrative and rewarding premiums, you should sell when volatility is at the peak of expansion in that range and cash out when volatility contracts.
This is another way a buyer gets chomped – they tend to buy and watch their option value crash down and burn overnight, simply because the wind went out of their option’s sails … and blew the sellers’ way.
Option buyers don’t get rich from buying options. Sure, they can get the occasional big winner, but it’s usually cancelled out by a bunch of losers.
Option sellers aren’t going to get rich overnight, either. But their winning average is far-more-impressive. Over time, a few dollars earned here and there can add up to a pretty nice chunk of change over time, especially when it’s reinvested.
The secret is to keep your monthly goal in mind at all times. And to not only identify target prices on your options but also to set automatic buyback orders at 30% to 50% profitability. Buyers get caught up in guesswork and emotions, whereas sellers benefit from avoiding the fear and greed that plagues their buyer counterparts.
Yes, buyers know their risks before getting established, but so do sellers! Better yet, sellers are net-cash-positive from day one, and they keep that money and have it earning interest in their accounts.
The big risk to buying is that there is always a looming danger of losing all your hard-earned money in one lousy trade. Sellers are far more realistic and disciplined in their expectations and trade management. Once you’ve “won,” which you do right away, you strive to keep the bulk of those returns.
Sure, sellers can have shares “called away” or “put” to them. But if you keep your options out of the money, manage your expectations, and adhere to profit targets, you can stay ahead of the market and be safer than your “buyer” counterparts. In fact, the only real risk is that there is a profit that could have been yours!
Technical analysis was first introduced by Charles Dow in the late 1800s. Over time, other researchers built on his ideas, leading to what we now call Dow Theory. Since then, many new patterns and signals have been added, making technical analysis a key tool for traders today.
Technical analysis is a popular method used by traders and investors to evaluate stocks and other securities by examining their past price movements. The core idea is to predict future prices based on historical data.
Logic Behind
The basic idea of technical analysis is that the way a security has behaved in the past can provide clues about its future price. By using the right tools and methods, often in combination with other research approaches, traders can make predictions about future price movements. In simple words, how a stock or market has performed in the past can give us clues about its future behavior.
Technical analysis is based on three assumptions:
Traders use charts, indicators, and patterns to predict where prices might go next based on these principles. For example, if a stock breaks out of a common chart pattern with high trading volume, a technical analyst might see this as a sign of a potential price movement and plan their trades accordingly.
The effectiveness can vary based on how well a trader applies these principles and adapts to changing market conditions.
1. Understanding and Experience
People who understand technical analysis well and have lots of experience often find it successful. They know how to read charts, recognize patterns, and use indicators effectively.
If someone is new to technical analysis or doesn’t fully grasp its tools and techniques, they might struggle to see accurate results. It takes time and practice to get good at it.
2. Market Conditions
Technical analysis works better in certain market conditions. For instance, during strong trends (either up or down), patterns and indicators can be more reliable.
3. Discipline and Patience
Some traders may find it hard to stay disciplined. They might make impulsive decisions based on short-term market moves or emotions, which can lead to inconsistent results.
Successful traders stick to their strategies and avoid emotional decisions. They follow their trading plans carefully and are patient, waiting for the right moments to trade.
4. Risk Management
Good risk management is crucial. Traders who use stop-loss orders and set clear profit targets often protect themselves from big losses and make better decisions.
Traders who don’t manage risk well may face significant losses, making it harder to see positive results from their technical analysis.
5. Adaptability
Those who can adapt their strategies based on changing market conditions and new information tend to do better. They adjust their methods as needed.
6. Use of Tools
Effective use of technical analysis tools and indicators—like moving averages, trend lines, and volume analysis—can provide clear signals and improve trading outcomes.
If someone doesn’t use these tools correctly or relies on outdated methods, their analysis may not be as effective.
Technical analysis can be a powerful tool, but its success depends on various factors including knowledge, experience, market conditions, discipline, risk management, adaptability, and the use of tools. By improving these areas, traders can increase their chances of making technical analysis work for them.
Day Trading refers to market positions that are held only a short time; typically, the trader opens and closes a position the same day but positions can be held for a period of time as well. The position can be either long (buying outright) or short ("borrowing" shares, then offering to sell at a certain price).
A day trader or intraday trader is looking to take advantage of volatility during the trading day, and reduce "overnight risk" caused by events (such as a bad earnings surprise) that might happen after the markets are closed.
Day trading got a bad reputation in the 1990s when many beginners began to day trade, jumping onto the new online trading platforms without applying tested stock trading strategies. They thought they could “go to work” in their pyjamas and make a fortune in stock trades with very little knowledge or effort. This proved not to be the case.
Yet day trading is not all that complicated once you learn a simple, rules-based strategy for anticipating market moves, such as that taught at Online Trading Academy.
Beginners can get overwhelmed by what they perceive to be the fast-paced and aggressive strategies necessary to generate large returns through day trading. This doesn't have to be the case, as Online Trading Academy's patented and proven core day trading strategy relies on patience and a good understanding of how to analyze risk and reward scenarios on any trade.
While it takes some work to fully learn and rely on guiding principles of day trading or intraday trading, beginner traders can give themselves a head start with some basic tips to craft a well-developed trading style.
Individuals who want to invest in equities need to understand the risks associated with investing. Investing in shares can be highly lucrative and can set you up for a bright financial future. However, understanding the risks and benefits associated with buying shares is a crucial step for your education.
Investing in shares, like any investment, comes with a certain amount of risk. Shares are often described as 'high-risk asset classes' when compared with other types of investments. The primary risk of investing in shares is that it can result in a loss of capital.
Unexpected events outside of your control or negative developments within the company can significantly affect share prices and the value of your portfolio. In saying that, this is not to scare you away from investing in shares, but merely a necessary understanding that all investors must-have.
There are ways to reduce the risk associated with investing in shares. The following are common measures that investors should have in place to control the risks associated with buying shares. Keep in mind that this is general advice only and may not be suitable for your personal circumstances.
Not having all your eggs in one basket is a motto that strongly applies when it comes to buying shares (famous words by Warren Buffet). Probably the worst mistake a new investor can make is to not diversify adequately. Diversification refers to making sure an investor has shares in several companies of different industries/sectors/countries etc., thereby reducing the risk relative to the return.
The degree of diversification is to the discretion of the investor. For example, if you decide to invest your entire portfolio in a single company dominated by the oil price, a collapse of the oil price will result in a collapse of your entire investment. Hence why it is important to diversify across different industries. Diversification on the share market can take many forms, for example investing in different sectors or different countries or both.
For example, a well-diversified portfolio may have exposure to Telecommunications, Materials, Financials, Consumer Staples, Information Technology and International, just to name a few.
The difficult part is knowing which sectors are most suitable and more importantly which companies within the sector are suited to your investment goals. One of the problems that often arise with diversification is that investors diversify at the cost of understanding their investments. Diversification is an important step when building your own portfolio.
It is vitally important to understand the company you are buying a share of. These days many investors forget that when they buy a share they are actually buying a part of a business and not just a digital ticker code. Without fully understanding the company's operations, its financials or future outlook it is very hard to determine if it will be a good investment.
The problem arises when you are interested in a firm, however, you are unable to fully understand its business model. In order to diversify adequately, you may be forced to look outside your scope of understanding. If you don't have the time or expertise on how to analyze companies a finance professional may come in useful. Having a professional equity analyst to contact and discuss the company will potentially lead to better investment decisions.
Different strategies can lead to success, however, in Wise-owl's view investors have the greatest chance to succeed in the stock market by taking on a long-term approach. An investor’s holding period (how long the investor plans to hold the shares) is crucial when it comes to investing. The shorter the investment horizon, the harder it is to predict the direction of the stock.
Market fluctuations are regular, mostly unprovoked and are hard to predict. A common mistake among investors is to sell after a fall and buy after a rise. This results in complete absorption of the fall and missing out on the rise. The rule of thumb is don’t try and time the markets, have long term outlook and invest in good companies.
Emotions are likely the number one challenge investors face on a day to day basis. Media speculation, your Barber’s stock tips, fear of missing out or running with the crowd are all factors that affect our emotions and in turn our investment decisions.
Removing emotion from your investment decisions is easier said than done however having an investment strategy and the discipline to stick to it, can reduce the risk of emotional decision making.
Now that we have spoken about the risks associated with investing and how to reduce them, we will analyze the benefits of investing. There are several reasons why an individual chooses to invest in the stock market.
There is hardly any other investment vehicle that facilitates such a diverse set of objectives like the equity market. The stock market facilitates investors from all geographies and all investment styles. The following is just some of the main benefits of investing in shares:
Over the long term, shares have outperformed every other investment vehicle including property, bonds, cash and several others. We emphasize that this is over the long run as shares do fluctuate more than most other investment vehicles.
If you are unlucky with your timing or stock pick you might not outperform, however in the history of the stock market shares have increased in value despite several bear markets or 'market crashes'.
Some shares also provide income by the way of dividends. Dividends are the shareholder's portion of the company’s un-retained earnings. Dividends are generally paid by larger corporations with an established income profile and years of reliable earnings.
Most companies pay out a certain percentage of their earnings through dividends, which means that the net payout will grow if earnings grow. Dividends can be received in cash, by cheque or be reinvested in the company, also known as a 'Dividend Reinvestment Plan.'
Shares are more liquid than other investment vehicles. When we refer to liquidity we basically make reference to how easily an investor can find a buyer or seller for a transaction. The largest companies listed on the respective stock exchange offer the average investor with enough liquidity to buy and sell shares instantly.
This provides investors with the flexibility to use their funds where they see fit. It is important to remember that transactions are subject to brokerage fees and need to be incorporated into your calculations. Smaller companies also known as small-capitalization stocks may not offer enough liquidity to allow instant transactions on a daily basis.
Stock markets provide investors with the opportunity to gain exposure to several sectors and markets. For example, a young couple with their entire savings invested in property will only have exposure to the property market.
If the property market declines, the young couple will be fully exposed to the decline. Whereas a young couple with a diversified share portfolio can have exposure to several sectors and markets and can therefore reduce the impact of a sector-specific risk.
The most important point to remember is that there is no secret to successful investing. The only rule is to buy great companies and buy them at the right price. This has over time been a proven way to achieve success on the stock market. Being aware of the risks and rewards of investing in the stock market is crucial for the decision-making process. There are basic principles that allow you to minimize the risk of investing as outlined above, however, there is no way to completely remove risk.
Investors hoping to maximize their gains try to identify stocks that are mispriced, creating long opportunities for under-priced companies and short opportunities for overpriced shares. Not everyone believes a stock can be mispriced, particularly those who are proponents of the efficient markets hypothesis. Efficient market theory assumes that market prices reflect all available information regarding stock and this information is uniform. Such observers also contend that asset bubbles are driven by rapidly changing information and expectations rather than irrational or overly speculative behaviour.
Many investors believe markets are mostly efficient and some stocks are mispriced at various times. In some cases, the entire market can be pushed beyond reason in a bull or bear run, challenging investors to recognize the peaks and troughs in an economic cycle. Information on a company might be overlooked by the market. Small-cap stocks are especially prone to irregular information because there are fewer investors, analysts, and media sources following these stories. In other cases, market participants may miscalculate the magnitude of news and temporarily distort a stock’s price.
These opportunities can be identified through several broad methodologies. Relative valuation and intrinsic valuation both focus on a company’s financial data and fundamentals. Relative valuation employs a number of comparative metrics that allow investors to evaluate a stock in relation to other stocks. Intrinsic valuation methods allow investors to calculate the value of an underlying business independent of other companies and market pricing. Technical analysis allows investors to identify mispriced stocks by helping them to identify likely future price movements caused by the behavior of market participants.
Financial analysts employ several metrics used to relate price-to-fundamental financial data. The price-to-earnings ratio (P/E ratio) measures the price of a stock relative to annual earnings per share (EPS) generated by a company, and it is usually the most popular valuation ratio because earnings are essential to determine the actual value the underlying business provides for earnings. The P/E ratio often uses forward earnings estimates in its calculations because prior earnings are theoretically already represented in the balance sheet. The price-to-book (P/B) ratio is used to show how much a company’s valuation is generated by its book value.
P/B is important in the analysis of financial firms, and it is also useful for identifying the level of speculation present in a stock’s valuation. Enterprise value (EV) to earnings before interest, taxes, depreciation and amortization (EBITDA) is another popular valuation metric used to compare companies with different capital structures or capital spending requirements. The EV/EBITDA ratio can help when evaluating firms that operate in different industries.
Yield analysis is commonly employed to express investor returns as a percentage of the price paid for a stock, allowing the investor to conceptualize pricing as a cash outlay with potential for returns. Dividends, earnings and free cash flow are popular types of investment returns and can be divided by the stock price to calculate yield.
Ratios and yields are insufficient to determine mispricing by themselves. These numbers are applied to relative valuation, meaning investors must compare the various metrics among a group of investment candidates. Different types of companies are valued in different ways, so it is important for investors to use sound comparisons. For example, growth companies typically have higher P/E ratios than mature companies. Mature companies have more modest medium-term outlooks and also typically have more debt-heavy capital structures.
The average P/B ratio also varies substantially among industries. While relative valuation can help determine which stocks are more attractive than their peers, this analysis should be limited to comparable firms.
If you want to learn more about this, you can always become a part of Swastika Investmart’s Financial and Market Research (SIFMR). Click here to join us.
Some investors ascribe to the theories of Columbia Business School’s Benjamin Graham and David Dodd, who contend that stocks have an intrinsic value independent of the market price. According to this school of thought, the true value of a stock is determined by fundamental financial data and usually relies on minimal or zero speculation regarding future performance.
In the long-term, value investors expect the market price to tend toward intrinsic value, though market forces can drive prices temporarily above or below that level. Warren Buffet is perhaps the most famous contemporary value investor; he has implemented the Graham-Dodd theories successfully for decades.
Intrinsic value is calculated using financial data and may incorporate some assumptions about future returns. Discounted cash flow (DCF) is one of the most popular intrinsic valuation methods. DCF assumes a business is worth the cash it can produce, and that future cash must be discounted to present value to reflect the cost of capital. Though advanced analysis requires a more nuanced approach, balance sheet items at any given point in the life of a going concern merely represent the structure of the cash-producing business, so the entire value of the company can be determined by the discounted value of expected future cash flows.
Residual income valuation is another popular method for calculating intrinsic value. Over the long term, the intrinsic value calculation is identical to discounted cash flow, but the theoretical conceptualization is somewhat different. The residual earnings method assumes a business is worth its current net equity plus the sum of future earnings in excess of the required return on equity.
The required return on equity is dependent on a number of factors and can vary from investor to investor, though economists have been able to calculate the implied required rate of return based on market prices and debt security yields.
Some investors forgo analyzing the specifics of a stock’s underlying business, opting instead to determine value by analyzing the behaviors of market participants. This method is called technical analysis, and many technical investors assume market pricing already reflects all available information regarding a stock’s fundamentals. Technical analysts forecast future stock price movements by forecasting the future decisions of buyers and sellers.
By observing price charts and trading volume, technical analysts can roughly determine the number of market participants willing to buy or sell a stock at various price levels. Without major changes to fundamentals, the entry or exit price targets for participants should be relatively constant, so technical analysts can spot situations in which supply and demand imbalances at the current price exist. If the number of sellers at a given price is lower than the number of buyers, then it should drive prices upward.
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