why stock with some good fundamental and positive growth news will also reverse and follow nifty trend ? i observe irrespective of resistance in stock , when nifty reverses , stocks follow nifty trend . How can a stock reverse exactly at nifty reversal? how system works? how smart money works?
what are the stocks which are highly liquid and good for intraday which have lease or no impact of nifty
Not an expert but wanted to clarify that nifty movement is the end result of stock movements and not visa versa
Nifty is nothing but an index of 50 stocks. When stocks within the index move, this will have an overall impact on the nifty
The rest of your queries i am sure experts willbe able to clarify
Even if a stock is a Nifty stock, it could be in the bottom 10, or at least not in the top 10. So when the highest market cap stocks, the top 10 stocks which weigh 50% fall, the remaining 40 too may fall, although not in the same proportion. But if any of the 41-50 stocks belong to the same sector of the top 10, they may fall more.
I don’t exactly know but I think trading by foreign institutions happens more in the highest market cap stocks because of their size, so it does not come as a surprise if their fall effects other stocks.
But this fall may be temporary, short term, not all businesses of the 40 stocks will be effected by Reliance or HDFC, so they will bounce back, although at a later time. This is why we will always have a few stocks performing and few not performing, if we look at a year’s return of any index.
I guess it’s because ultimately prices in short term are not driven by fundamentals as much as they are by the investor sentiments ( bull / bear markets) .
We may also argue that most of the macro factors impact businesses alike, and hence stocks go up/ down in herds.
You have a point. The value of stocks and the prices will fluctuate but it is not entirely driven by fundamentals. Traders need to analyse the market and build on knowledge before making a move.