Opening Jump and Noise Trading

Abstract:
In this paper, we provide evidence of a chronic crisis syndrome that is present in the Indian stock market, in that we find that the opening stock price contains noise on an everyday basis. That is to say, there is a ``crisis'' brewing in the market every morning, because prices have deviated from fundamentals, i.e., from where they ought to be. However, we also find that the impact of noise does get eliminated from prices at the end of the trading day, which says something remarkable about the price discovery process inherent in the trading mechanism at work in India. We show how these seemingly contradictory twin empirical results about the Indian stock market can be reconciled in the framework of the Noise Trading Model proposed by Kyle (1985). Furthermore, we show how to come up with a simple trading strategy that makes use of the noise in opening prices and demonstrate that it is indeed highly profitable.
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Tada Waterfall- reloaded

On the night of Independence day (15th August 2009) most of the available room mate are started drinking and they started discussing about tour for a day. Most of the time we plan for different places and it never happened because it is very difficult to meet everyone in the room for a day. Now we have five members and we decided to go to Tada waterfalls and it is around 90KM away from Chennai . We took train form Central railway station to Tada railway station. We asked auto guys how much they will charge from the railway station to the falls, it is around Rs. 400. Since we didn’t had the breakfast we went to the town for the breakfast, Dosa and vadacurry (which is supposed to be good in Tamil Nadu). One of the local guy asked us to take bus to some place ( I don’t remember now) and take auto from same place. Auto guy took Rs 150 to the falls, where we have to start walk around 3 KM , before that it was around 6Km, two years back I went the same place along with my class mates at IFMR, now there are lots of changes on the way to falls. We reached place where there are big rocks where I stopped on the last trip. But Mr J curios about climb the big rock and we reached the top of waterfalls, and there was a pond where we took bath.

Santosh Trophy

 

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