Nifty has fallen about 120 points today and that is why IFCI rose from 48.50 to 51.75 only today. If Nifty was on the up, you would have seen IFCI beyond 60 today itself. In futures there is a short sale of about 8 crore shares of IFCI which needs to be bought back by the shorts.

good observation. you are absolutely right.

Awesome observation. :). Liked it much.

Dear Friend

If I got u correctly, u mean to say that the short sale of 8 crores shares are in Dec.series? because nov series has ended today and whatever short was there, should have been covered or squared up or shifted to dec series. The news of appointing consultancy firm is no doubt encouraging and that is why the bears have run to cover their positions resulting in sharp increase in price but do u feel that the momentum will continue at the same pace splly when it is also declared that the report shall be submitted in 3 months, a big period.
My feeling is the stock would no doubt increase, though, a bit slowly, with side ways movement at regular frequency. However, touching the 60 or more in Dec series is doubtful. Suggestions r solicited.

Hello Kothari: The Dec. OI in IFCI is nearly 8 crores shares all shorted before the news on Profit channel broke out. It is this open interest which has to be squared up by shorts. When the news came last time about merger etc. about 2 years back, IFCI reached more than 120. This time it appears that the Govt. is earnest in its efforts to carry out the merger or stake sale decision. Therefore IFCI (having the best fundamentals and lowest P/E) has to go up. To what extent it will go up depends on how early the decision is taken by the Govt. Because of the impending decision on the part of Govt., only a foolhardy person would short the share at the current level.

As for today`s price level, one has to take it in the context of about 1000 points fall in Sensex since yesterday and today. In sympathy, IFCI has fallen very moderately. When the Nifty starts rising again, IFCI would easily cross 60 in December and then onwards how high it will go depends on the speed with which the decision is taken by the Govt.

i too expect on the same lines on this