Hi everyone. Just saw some stocks which are rising continuously and hitting upper circuits. Ruchi soya and alok textiles. They have no sellers so where are the people buying the stocks from ?!? How is the price going up ?? Should retail traders invest ? If yes how ? Everytime it has a gap up opening and hits the circuit.
There are sellers but very less, while Buyers are multifold. This imbalance in Demand and Supply is the reason stock hits Upper Circuit.
It is better to stay away, when these type of stocks start falling they will start hitting Lower Circuit. Once you’re trapped in LC, getting out is as difficult as getting in when stock it is in UC.
I have seen a more weird one ELCIDIN, tons of buyers and not even a single seller. As the market opens lakhs of buyers get lined up and at the end of the day not even a single share is traded.