It’s the 2nd time a good stock like now CIPLA posted great quarter 2 results and I had bought 200 shares hoping it would go high but from the next day it has been going down and down even after Market touching all time high. Please help me understand the reason.
Just google your question and you will get the answer!
https://www.google.com/search?q=Opposite+reactions+to+good+earnings
We retailers mostly focus only on profits and losses when it comes to earnings and based on that take decisions to buy or sell… There’s always more to the story, the finer details which say much more than the final profit or loss which we don’t explore. Companies also give guidance on future prospects, even if profits were good but if future prospects are not that good there will be bearishness in the stock and vice-versa for losses. There a lot more to the story behind the numbers.
I just read there are some Operators who deliberately pull the stock down to trap retailers but after reading ur answer it seems right as well but here CIPLA company’s future guidance was also positive still i don’t know how it came down to 717 from 804. Anything related to Pharma Index?
One thing is that maybe the market participants would have already factored in the good results and also the positive guidance as well because everyone already expected an increase in expenditure on medicines after covid. And the stock may have run up significantly above its intrinsic value. To move a stock further up you need a big positive news which nobody knew of and hits the market suddenly.
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I have a same doubts sir…
Both the results of CIPLA and Divi’s lab are extremely good… And technically they are at the Resistance level near the all time high…
Now the next trading day after the result day…
The Divi’s labs gave a break out with huge volume with a gap up opening… it’s mean their is a huge buying in the pre-market session due to good news ever though it is at a R- level.
But in case of Cipla the market opens with a huge red candle its means profit booking and selling takes place… that’s no buying pressure even though the new of q2 results was good and R-level didn’t break…
Can any one explain the logic behind this??
Can any please help me to understand the connection between news and price action…?
Also i am facing a problem…
At first i started trading with price action and technical analysis as the main focus… But as time goes i deviated and started taking trades on the basis of News…
Is it logically…
Please kindly some one help me… How to go on the write tack… Where to make decisions on the basics on news or price action (TA)…
Your replies can make wonders
@MightyBulls here’s what I’ve observed from market behaviour over the pandemic… there is zero respect to technicals when there is high enthusiasm or pessimism between the investors/traders… the prices can rise or fall freely breaking all resistance and supports.
Hi bro,
What is your plan after leverage is gone?
Thanks for awesome👏 explanation.