On news channels and websites many people provide target and stoploss for stocks. On what basis they will provide tips

On what basis advisory companies give targets and stop loss for stocks ? some times it will hit target and some times stop loss. So, I m planning to analyzing the stocks myself with out depending on other.

You said it yourself !

Analyzing on your own is the best. If you are starting fresh, this may consume time , you may burn some money but you will lay yourself a solid foundation.

Ignore what they say on TV, most of the time they say things that they are not clear about themselves.

Just to give you an example. look at this…

The journalist here is talking about Thomas Cook India, and Thomas Cook UK. There is no connection between the two companies, except for sharing the same name. The promoters are different, and obviously different management.They both have different financial statements.

But the media guys seem to be completely ignorant about it, and therefore misleading the traders/investors.

So you are on the right track! Do it yourself, its worth the efforts.


They have a hidden agenda, to put it simply.

Say they have some of their reputed client’s shares around 5000 shares say of ABC Limited company.

Assume the market has gone down after the purchase of those shares and they have these 5000 shares lying in their demat account.

In order to sell those shares, they will advertise BUY shares of ABC Limited Target X and Stop Loss Y.

Some traders follow them because of this advertising and enter a bull rally to BUY the shares of ABC Limited. This in turn creates a demand. When the share price hits the price what adverstiser have in mind, he will sell those 5000 shares without loss and exit the market with happy faces.

Since the demand is artificial, the stock price may again come down and settle back near the morning opening value, leaving the other traders in some kind of loss.

So beware of such advertisements, even if you follow you should know when to enter and when to exit. Any late entry or late exit will hamper your results.

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Nice Question that you have raised. I am sure you would get the answer by watching the movies ‘Kung Fu Panda’ and ‘Pursuit of Happyness’.

Thank you karthik. For short term and intraday which factors that I need to check before buying stock , I mean fundamental or technical . If I go fundamentally what are the important things that I have to check? If i go technically which indicators have to follow ?

In this case it might related as thomas cook bought Sterlings

@ Blessonje, No Sir, it has no connection. Its pure, reckless journalism.

@Sai, Fundamentals does not help you in intraday or short term trades. You need to look at TA based indicators such as RSI, MACD, BB etc to identify signals.

thank u karthik… :slight_smile: