Doubt regarding speculation in recent IPO stocks

[sid791]

1. How to know whether there is speculation in stocks. Looking at the recent IPO stocks, e.g. AUBANK, DMART, CDSL etc ? there share prices have increased rapidly.
2. How to know whether these price increases are justified by their fundamentals ?
3. How to predict a price fall, and when would profit booking take place ?

[Karthik]

@sid791

1. How to know whether there is speculation in stocks. Looking at the recent IPO stocks, e.g. AUBANK, DMART, CDSL etc ? there share prices have increased rapidly.
2. How to know whether these price increases are justified by their fundamentals ?

If the price is not just by fundamentals, then clearly increase in price can be attributed to speculation about future earnings. You can do a simple fundamental analysis to figure out if the fundamentals support the price. Check this module on Fundamental Analysis.

@sid791

How to predict a price fall, and when would profit booking take place ?

Hard to time the market, my friend.

[Subir_Gupta]

should I hold or sell CDSL allotment of 100 share on monday?