Technical Analysis of Indian Equities by Nooresh

Rumours, Sources, Unconfirmed, Delisting , Takeover, Stake Sale, Land Sale – First Leasing, Foseco, Raymond, Fresensius Kabi , BASF, Novartis, Century Textiles, FSL, Timken, Karnataka Bank , India Infoline the list goes on !!!

In the last few weeks we have been bombarded with rumours of all sorts. Every business channel, Blackberry messenger, Yahoo or any modes of communication is full of rumours.

Even more interesting is the part of how creatively the rumours are designed 🙂 on exciting words as described in the heading.

 

Some of them are as follows

 

Delisting Candidates ---- Timken India, Foseco, BASF , Novartis, Monsanto, Blue Star, Elantas, Timex  and so on ..

 

Land Sale – Raymond , Premier Ltd

Takeover – First Leasing , FSL , 3i infotech, India Infoline , FSL, Bata

Stake Sale -  Karnataka Bank , First Leasing

 

Delisting / BuyBack – Foseco, Monsanto , Timken, Basf , Amrutanjan Timex ,

 

Acquisition – Biocon, Vimta Labs, Lloyd Steel

 

Stock price movements post rumours – Timken 247 high to 224,  Frsensius Kabi 145 to 129 , First Leasing 115 to 98 and so on the stocks did jump 5-10% but end up losing more then it.

 

Well the number of unconfirmed rumours ( as mentioned by TV channels ) has just increased immensely over the last few weeks.

 

Earlier when i got a buzz on Camlin, Andhra Paper and some which worked out i thought that information is being heard on the market very fast due to new modes of communication. My BBM gives me a rumour every few hours 🙂 Wont be surprised to hear a rumour on rains, cricket matches also it seems 🙂

 

What is more surprising is where does this rumour come to Business Channels 🙂 and if its coming why are they flashing on the screen without confirming ??? 

 

Well i smell something seriously wrong and somebody benefitting from it !!The reason is all the stocks do jump up sharply in the day on the buzz but end up losing 10% over the next few sessions and head back much lower also.

Is this a ploy to trap or fraud traders/investors and participants who jump on any rumours as well as an opportunity for certain people to dump some holdings or profit from the unusual liquidity created.

Earlier such a trend of rumours were done by sending bulk SMS,e-mails for dumping small caps but the current modus operandi is seriously concerning.

The market has not been doing much so it seems market makers are finding ways to create false liquidity and profit from it :). Also in such stuff the results are very very quick 🙂 as the game is done in 2-5 sessions.

 

Also with the lull in viewership it seems Business channels are trying to use every ploy to out do each other in being the first one to flash 🙂 the rumours. If this continues there wont be much difference between Business Channels and Cartoon Network.

 

So who can stop this – Well the regulators can but they seem to be outsourcing their work 🙂 too – Check this article - http://moneylife.in/article/investor-interest-sebis-hands-off-approach/17199.html 

 

 

BOTTOMLINE --------------------------- The rumours are all around and will get more creative and exciting !! Avoid trading on it unless you are looking to take a gamble with high risk 🙂

Article by Nooresh Merani

Nooresh has written 2581 articles.

You can follow Nooresh Tech on Facebook and Twitter here.


{ 5 comments… add one }
  • Ritesh June 15, 2011, 21:48

    This is great analysis. Really Appreciate it.

    Reply
  • rahul June 16, 2011, 18:03

    wheres gold and silver heading … no commodity updates … gold fell from 1550 to 1510 and back to 1530 … can we see a seasonal correction in gold

    Reply
  • rahul June 21, 2011, 15:25

    Classic case of rumour based selling in skumars today .. Cnbc to notice downfall first and suddenly flashing 83% promoter shares pledged and quick to get to the management .. Stock revover 16% in few minutes ..udayan mukherjee must have a moolah out of this .. 🙂 😉

    Reply
  • rahul June 21, 2011, 15:27

    Classic case of rumour based selling in skumars today .. Cnbc to notice downfall first and suddenly flashing 83% promoter shares pledged and quick to get to the management .. Stock revover 16% in few minutes ..udayan mukherjee must have made a moolah out of this .. 🙂 😉

    Reply
    • nooresh June 22, 2011, 21:50

      Well this is classically a case of market sentiments

      Reply

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