Can any one explain the recent mindboglling rally of IRCTC shares… The rally seems to be have been started when the news of its stock split were out. But how does a stock split can result in such rally and it seems to go on… Is there any logical reasoning behind this ?
They say “Sometimes science can’t explain everything”. This is true.
Some will say stock split others will say re opening after lockdown etc.
Every individual will give you a separate reason for this, you can’t really figure out the correct one, in fact no one can.
This is how stock market exists. No one know ‘How’ & ‘Why’.
So, don’t ask others. Believe in your own opinion.
Also sometimes , “There isn’t a reason for this/that to happen” and at times “Our brain can’t really tell the reason for everything”.
Hope you get the answer indirectly.
This is my perspective and I could be wrong. What happens is when a stock price touch the roof top, most of the people who are not invested are on the sidelines and waiting and waiting. When a stock split or bonus is announced, although the total value remain unchanged, the market price of the stock suddenly falls down. This creates a feeling of buy for the guys who were waiting on the sidelines. This buying pressure will eventually increase the market price of the stock.
This is my personal views only. On many occasions in the past, when there were stock split or bonus issue of shares, I have personally invested on the ex date. It is a mind thing .
these are my personal views only
I unpledged all my IRCTC holdings today to sell tomorrow. May be I was a little late. Should have done it yesterday.
Wish zerodha had the option to directly sell pledged shares.
Whats goes up quickly , come down as well quickly! Same is happening is other stocks as well. Today Nifty was Super Crazy.
Unless you sold it the morning, it would have been anyway difficult to sell once the crash started. I had sold around 53xx a couple of days back only to see it rally another 1000rs and then fall 20% in minutes.
When I decide to see. I sell it usually at 9.15 only. I don’t try to time and all.
Once I decide to sell, I unpledge and sell it at 9.15 next day as a market order.
Not second guessing your decision is a good strategy.
It can go either ways. Why simply time it and waste time looking at the screen.
Thanks @Jason_Castelino for replying… I am new to the finance world and don’t understand the concept of Unpledging here. Can you please tell what’s it is and how to use it ? TIA
I hope its stays sane from here… but it is really intriguing where just market sentiments take a stock in such small time frame.
When you trade in derivatives segment, there is a requirement to maintain margin in your account. This margin can be in the form of cash or Collateral. My whole long term portfolio is pledged so that I can use the margin from it for my fno positions.
Irctc was one of those stocks which I have been holding from 1400. I finally decided to sell it. But since its pledged I had to first unpledge it.
I do not think you are trading in fno segment. So don’t bother much about pledging.
“Another day, Another rally”.
@Jason_Castelino , Did you sell IRCTC ?
I cancelled unpledge request yesterday at 3.20
It was at 15 percent LC. And fell 25 percent from highs. So cancelled.