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POSTED BY ON November 8, 2012 11:02 am COMMENTS (10)
While doing Intraday suppose a share has more BUYERS and very few SELLERS than ALSO if the price is not increasing under this case what might be the reasons for it. (Plzz donot take UPPER CIRCUIT or LOWER CIRCUIT into consedration)
Someone told me that might be any BAD news but share prices take the bad news into account and even though instead of share price falling either it stops in a fix point or move a little bit.
But here I am asking why, when there are more buyers than sellers than also the price doesn’t go up.
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Dear Radhe, I do hope the understanding is clear to you now. Yes Bid/Ask is same as Buy/Sell reference.
Thanks
Ashal
Let me get back to the actual question posted
“While doing Intraday suppose a share has more BUYERS and very few SELLERS than ALSO if the price is not increasing under this case what might be the reasons for it”
Simple the stock price is governed by the movement of bids and buying/selling.
So in this case if no one is selling and no buyers are ready to bid higher then the stock will remain in same place.
Haaa haaaa haaaa hey Zion view your way of veiwing things is totally different (LOL) thanks yaaaar crystal clearly understood..
Also if I am not wrong Bid/Ask is same as Buy/Sell in reference to “”movement of bids and buying/selling.””
Vikash,
I am not sure what are you trying to get across. Please do not try to be too technical or purist when some one is trying to understand the basics.
Don’t you know based on some news the share price fall during intraday. Many times news are simply predicted by CNBC AWAZ, ZEE Business, etc. Haven’t you faced this kind of situation in your entire trading experience?
I was just trying to show him a possibility and the possibilities may not be true always.
I agree Biswa, Sometime price do fall on same day based on some negative news but that happens sometime and not always. Also, Due to volatility it’s difficult to make money on Intraday basis until of course you don’t use SL and you are lucky.
Let me give you a recent example, United Spirit price moved from 500 to 1300 in 3-4 months. There was no news about stake sale to Diageo during that move. Two months back, News came and stock start moving based on news/rumour/speculation. News is very positive, then why stock didn’t moved even 30% in last 2 months ? Simply because stock has already moved by 125% before news came. Stock is moving +/- 10% and day traders losing money on most of the days when you trade based on news.
Most of the news channels have vested interest. They show what they are paid-for. Also, most of the important news are known to big fat cats before it comes on business channels. If not know, it’s always 50:50. (Stock can go up and can fall in no time). It’s very risk to trade on Intraday basis on basis for news.
I may be wrong but In my experience, If anyone trades just based on news-flow, That person is going to lose all money in day-trading. Most of the traders don’t learn until they lose money. In fact, they never learn even after losing lots of money.
Regards,
Vikash
Hmmm. Suppose the offer price of Kingfisher airlines is rs 12 today and there is a crucial meeting between the Kingfisher management and striking pilots going on and it is expect that the meeting will fail. Then no buyers will prefer to by it at rs 12 as they are expecting the share price to fall further after the meeting.
How one expect price to fall if meeting fails?
Let say, Meeting fails and stock price is at 12 and few big market participant BUY 1 million shares at 12. Then stock will be locked in 5% Upper Circuit. NO ?
Stock price moves as per Buying/Selling by Institutional/big market speculator investors/traders and not necessarily due to news-flow. In fact, many big fat cats BUY on negative news and SELL on positive news. Take an example of Nifty. It went from 4500 odd levels to 5600 in Jan/feb when news-flow was mostly negative and again nifty came down later when actually good-news started to come.
It is often said that “News comes later, price changes first”.
Of course, I am talking about Intraday and very short term. In long run, Company Fundamental reflects in stock prices.
First of all, There is no way one can check Number of Buyers/Sellers. This is impossible. What we see on terminal are Bidding no. of buyer/seller.
For example, Let say i want to Buy 1,000 shares of Yes Bank @ 410 Rs. I can put the disclosed quantity as 100 only so all terminal will show only 100 and not 1,000.
Also, many market participant use bidding at those price which never executed. For example, Let say Yes Bank is trading @ 410 and I put 10,000 shares sell order at 452 Rs. Obviously, Terminal will add 10,000 quantity but it will never be executed. why smart traders do ? For trapping! 80% Buyers/Seller quantity are fake.
News doesn’t fluctuate the price on Intraday basis. It’s myth. Why PSU banks were up by 5%-10% yesterday after delivering one of the worst results? Why United Spirits fell 15% last week on single day and then went up by 30% afterwards. News was same i.e. Stake sale. Market works on speculation in very short term and price reflects sentiments, rumour, buyer/seller position. Trading is Zero sum game and human mind is such that it’s almost impossible to make money in Day-trading. You can make earn but won’t able to take your money back. If you have good knowledge about equity market, then short term is still better.
Its difficult to say why, may be no body wants to buy that share at that offer price. May be the buyers are expecting that the share price will fall due to some news that is yet to come.
Hey Biswa ji what you wrote not clear to me Kindly elaborate it.