My query is why stock prices fluctuate on daily basis. All will say it is based on demand and supply, then again why demand n supply fluctuates daily?
I really had to keep thinking for 5 minutes about the question you asked. Are you recommending that stocks should have a MRP like Parachute Coconut oil at 250. But then, even for a Parachute Coconut oil, if there is a short supply, the grocery guy will give it to the person at a higher prices and to a person who is willing to buy it even higher than the MRP. Reminds me of Onion prices fluctuation in Delhi. So when onions and parachute price can fluctuate when there is short supply, I am sure you will agree, it is ok to have fluctuations in stock market. Now do not ask me why there is short supply of Parachute coconut oil.
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neatly explained 
think , like you are bargaining for your product to the shop keeper , same thing is happening . stock market is a business place , we are doing the business of stocks . that’s why it’s called stock - market !
Thnx for the reply @neha1101. but why there is buying one day and the very next there may be selling. is there any way one can predict the demand -supply mismatch.
HI @ShubhS9. I have a query regarding stock price movement. One user explained it using general commodity price movement citing supply n demand mismatch. Lets take ITC which was trading at about Rs 220 few days earlier and now it is near Rs205-206… As supply means people wanting to sell in stock market why people are selling it after such a rise. Again sometimes there may be huge buying after continuous fall.
Macros: The reason is the universe i.e the number of investors in the stock market could be in billions.
Each one has a perception. For example, I hold ITC, It had gone upto 300 levels and started falling, inspite of the stock falling, I did not sell, I held on to it as if it was my baby finally it landed at 165 and then it moved to this current level.
What I am trying to say, is that there are so many investors around who have different perspective of the same stock. So one day, few would sell and the other day, a newbie could buy the same stock. Each one has a view and this is the beauty of stock market.
Last March, did you know, you could get HDFC at 750 levels, why, most of the FII were selling and running away, but then despite the sale, there were equal number of investors who were willing to buy the same stock at 750 level thought at that time, the world was collapsing for few. At the same time, when Yes bank moratorium was announched there was not a single buyer for shares, this was the first time, I saw, Icici Direct showing zero buyers and only sellers.
The beauty of stock market was explained by Mohnish Pabrai through an analogy of a movie theater. He says, stock market is like a theater with say 100 seats. All seats need to be occupied, this is a must, there cannot be an instance where few seats can be empty. So the movie starts, movie in the analogy is the company, now someone says, there is a smoke in the theater, in normal circumstances, people will rush to the exit. But in markets, you cannot, you can only go out if you can manage to get someone for your seat. So there are people outside the theater watching you, you will start bidding, if your bid and the person outside match, then you will replace your seat to him and you will walk out. If not you will then start reducing the price until you find a person who is willing to take your seat.
Going by the same logic when you hear people clapping and enjoying inside the theater, you will find people outside trying to get your attention by offering higher price and if you think the price offered is high you will be willing to give up your seat for the new person.
I hope the above example makes sense. Take care