I hear lot of bullish trading calls for next week (2nd week of April) on Jubilant Food, Titan, Indigo, Sriram transport, Piramal enterprise.
These have already run up and on their highs. On what basis these calls are being given? Is it usual trick of analyst wants to make retailers buy and they can max out on their long positions and exit?
Trading calls can be made by anyone…
Everyone has different set of indicators which indicate them whether the trade will be high or low…
Better not follow these trading tips as you don’t know what these people are seeing on their screens and what parameters have they thought to take a trade… and when to exit a trade if they are wrong…
So, better than blindly accepting trading calls, you must look for a logic behind a particular trade… if you are convinced by that reasoning than go for it else chuck it…
Moreover, don’t go for macro level news play as all that is already factored in price… Eg: recently, GM breweries came out with numbers, retail traders went to buy at 9:15… as the price already had it factored in, the stock fell from +4% (in pre-open market) to -4% at the end of day… So yes… BEWARE OF SUCH TRAPS!!
There is a reason why retail money is called ‘dumb money’ on wall street 
Noob here, so take it with a pinch of salt.
My understanding is that these calls are based on the assumption that the stocks exhibiting greater relative strength will perform the best whenever the bull run resumes. (Relative strength is basically how a stock behaves in relation to the overall market).
In fact, I had a query on this concept here as well - Do Sectors Outperforming In A Correction Lead The Next Rally? If Yes, When Is It The Right Time To Enter These Sectors?. (This concept can also be found in William O’Neil’s book on the CANSLIM investing approach).
It’s also a difference in style - Trading Breakouts vs Trading near Support. If you subscribe to the former, then you’d argue that there isn’t much supply on the left hand side to restrict the upside on these stocks that are making fresh highs.
There’s also the fact that momentum is favourable for these stocks as well.
Whether you do heed experts’ advice, boils down to whether your trading philosophy matches that of the experts.
PS - I’m a noob, so if there’s any flaws in my post, I hope the more experienced traders will chime in & correct the same.
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New high denotes the Strength of the scrip. New low means weakness. If the mkt as a whole is bottoming-out and few stocks are consistently making new highs means they will be the leader in the next Intermediate-term Swing. There might be some vested interest by these analysts if they or their clients are holding these scrips.
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