I agree. In cases like these (recently Videocon), retail traders don’t really know the whole story ; stock might keep hitting lower circuit for several days and traders buying the temporary bounce can be trapped for some deep cuts. Better to let the stock settle down first and make a new base formation.
In situations like these I always remind myself that there are much bigger & savvier investors (like Mutual funds, FIIs) who are hungry and always hunting for value buying in this expensive market. So, if they didn’t bother buying the stock today (down 20%), why should I act smarter ?
Someone sent me this snapshot of high deliverable % in Vakrangee yesterday, citing a case for bottom fishing and I sent them the delivery stats for Videocon (below).
Look, I don’t know if Vakrangee is good buy at these levels or not; all I know is that delivery stats can not be relied upon.