I am creating this thread where I will post hypothetical questions pertaining to markets.
Everyone is welcome to contribute by posting similar queries or by answering & sharing knowledge.
To start with,
I want to ask, suppose a big FII starts buying all the equity of some small/midcap or even large cap.
The FII institution keeps on buying equities of company XYZ from open market slowly n gradually until there are nomore sellers left.
What will happen now?
Will the price be in complete control of FII? And so the price may rise indefinitely on account of no more sellers available?
Will the LTP stay unchanged for few days until no trade takes place?
Since the equity of any company available on exchange is just a very small percentage of total shares of that company which are with promoters, big investors , reserve shares etc.
Then will the company start releasing its equity from within to bring it available for people?
brother, its very rare when fii buy a less volume counter,
even if they buy such stocks, they buy only for long term, and keep then, like you can see there are some stocks which were good before 08 crash, but after that they have not bounced back, but still some fii stake is there
they can create buying or selling artificially when they want to exit a low volume counter with the help of some investment bankers and the msg we get on mobiles.
Haha bro! My post is intended only for hypothetical cases. So u should assume , imagine a scenario like that.
I m not talking about practical reality what happens in real. Obviously I also know that its highly impossible to have scenario like above but then again think, if someone does it. Theoretically its possible.
And if its theoretically possible then what will be the outcome of this? That’s what we need to discuss.
bro, read some market, it is not just possible it happens
you can confirm my statement with some cheap stocks, which were at high during 2007
U are still not getting it what I am trying to say.
TechM stock price is increasing without any trigger news…Is it insider trading or operators trying to manipulate the price?
It has nothing to do with hypothetical analysis. I m not tracking this stock. But could be strong technicals.
Check moving averages crossover, RSI, MACD.
Also have a look at different time frames ranging from 4H to 1D to weekly, monthly.
Check deliverables, any change in promoters holdings etc.
Stock may be anticipating good quarterly results but no guarantee that results will be as good or bad!
There could be news cooking up. IT stocks may be in focus during BUDGET session.
Also H1B VISA norms getting tough for indians. How does it affects this company, you will have to check.
Then, why IT stocks are having a party?