Even at the cost of sounding repetitive, I am going ahead with the post as similarity between the recent examples are striking. In the recent posts on Lupin and Sun Pharma, I had highlighted how price makes a move, ahead of the newsflow, to an area of resistance / support and the news follows suit, facilitating pro-money to take advantage of. This theme is so very common that I can write reams citing examples. But, I will stop short with Sintex Industries.
As highlighted in the above chart, there was a big rally on July 7, accompanied by higher volumes. Am sure this stock would have popped-up in the scanner-list of lot of analyst and traders after this move. The stock does nothing for the next two days and then cracks big time, courtesy disappointing earnings.
It costs me nothing to answer the above questions by spending a little time and typing a couple of paragraphs more. But, I think that would rob the learning opportunity. Hence, I am winding up the post rather abruptly and expect some feedback from you in the comments section below. A detailed analysis from your side would be appreciated. Will post a trade idea in Sintex in the premium segment over the weekend.
Note: I own shares in Sintex Industries