I’m trying to understand why some stocks move 10%+ in a day with 10-20 times the usual volume. I was looking at some charts today but I can’t find any news on these stocks (I checked Zerodha Pulse, Twitter).
For example, today INDIANHUME moved 17% with 28x volume and no news. Interestingly, the volume came in the middle of the day. So why would this happen? Is this being traded on some inside information?
Did you check BSE website.Usually companies have to report to BSE about any substantial information that they have related to the company
Yes, I did check NSE website as well since I’m looking at the NSE stock. No announcements.
Some fund house would have bought it. They have a research team which keeps looking out for stock picks, submit their research. Once approved, it is executed.
This can be based on fundamental ratios (or) simply based on upcoming event like budget or any govt policy.
Maybe thats why it has nothing to do with any new development or news which comes today or this week. You will see many times such stocks go up 17% then do nothing later.
According to me, people try to match price moves to any news available out there !!!
Ofcourse there are genuine news based moves, but they are less frequent than people believe.
Look out for whats happening in longer term TF.
EXAMPLE : If the 1hr is super bullish and 3 min TF bearish, you can get a sudden “inexplicable” up move.
Forget news !!! It is not how you involve yourself in Stock Market !!!
Thanks everyone for the explanations. Makes more sense now.
Are you sure that there’s no news or maybe there’s news that you aren’t aware of?
The volume you are talking about is institutional volume. Just by the volume itself you cn say tht some big institution has bought a chunk. Not at all related to news etc. Institutions know the real fundamentals of the co. they are investing in. Retailers believe in the fake news on websites n get trapped …