Why do stocks move heavily without any news?

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

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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.

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You have a very normal and intriguing question but we must look at the context for that move.

If you look at the daily chart of IndianHume you would see that it was in a constant downturn with pretty thin volume, then we see a big green candle which was just nothing more than emotions at play. Then again prices reversed and we see some more downturn. Then for over two weeks the price was in a narrow range. And then once it broke that narrow range with higher than usual volume, more players eventually jumped in and pumped the rally. But I would be cautious of these stocks and had I bought it in that narrow zone I would have gotten out in the top of the first breakout candle itself and looked for another opportunity. This stock chart is something which would break your spirits if you buy in a big candles hoping for some more up-move or the bigger fool theory. The logic is that very few rallies have sustained in the past and once we see the big green candles it’s been a slow and merciless downturn in most of the cases.

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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 !!!

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Yes, typical emotions and mean reversals…

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 …

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