I bought Bharat Electronics Future at 1585 but it’s trading 1560 today. Now there is an Offer for sale at 1498 for tomorrow and day after tomorrow. Also, the expiry of future is also on the day after tomorrow. The stock will dip for sure tomorrow so how and what should I do?
Hi Trader, this is a trading question. Not sure you should be asking about recommendations. But just as per me seeing BEL’s daily chart, today’s move is a good breakout move. Tomorrow, if you wish to sell, sell your futures once spot price is near 1576.
OFS at a lower price doesn’t mean that the stock price has to come down. The public holding on PSU’s like BEL is quite less and hence government is divesting stake through this OFS. Higher liquidity is actually good for such stocks. If you are worried that the price will come down because of the OFS, you shouldn’t be.
OFS is at a discount as the government wants investors to benefit by applying/buying shares through the OFS. If you check historically all OFS has come at a discount and it hasn’t necessarily meant the stock price moved down because of this.
But that said, can a stock fall tomorrow/day after, that is a market call. It could go up or down, but to reason that OFS will lead to a fall is not right.
nithin sir,considering all earlier OFS of PSUs,prices of stocks did fall…because they are offering with great discount…but wait for the markets call and decide…whats say nithin sir
What I was trying to tell was OFS in itself is not a reason to fall.
Yep, they have come down immediately after OFS announcement, but then doesn’t mean that it should just because of the OFS. It could be different this time as market is doing generally well in the last few weeks. Guess we need to wait and see tomm/day after.
@nithin sir,so what could be your suggestion for trader who has started this topic considering both the situations of going up or down?in my opinion share will fall but it will bounce as BEL is good company so roll over is good option…
I have stopped tracking individual stocks, can’t really comment. But generally from my trading days, if a stock is outperforming a broader index, it is best to take trades which are with the trend than against when news items are released. So yeah, kinda same thing u r saying.
Where is your breakout effect…OFS is different ball game altogether…now u can see some upward movement tomorrow …so rollover tomorrow is the option for trader if dealing in future …
hi trader, technical analysis will tell you that it was a breakout. But when stock gaps down due to such bad news, no one is spared.