On 23rd October I happened to receive a text message on my mobile recommending to buy a BSE stock - CUPID TRADE for a target of upper circuit !!
Although I never act on such messages, out of curiosity, as I always do, I decided to check the chart. This stock happens to be listed only on BSE. Since I have charts for all BSE and NSE stocks (historical too), I checked the chart till the previous day, and saw this :
On first glance, it was clearly in an uptrend but with thin volumes (the 20 day moving average of volumes was just 14,400 till that day).
The SMSs to buy increased and then I realised that it was in lower circuit already at 263.1 with a huge volume of 3.79 lakh shares. So the target mentioned was 22% from that price, that too intra day !
The text messages continued till 12 noon and one of the messages was:
I started tweeting about it, and following are my tweets on that stock:
I also saw the long term chart which told a story:
What is the status of that stock today? Here is the latest chart:
The stock has been in lower circuit every single day since that fateful day (22 days), with volumes in 2 and 3 digits.
Imagine the plight of those who bought it on 23rd October based on those SMS messages !!
Moral of the story: DO NOT BUY ANYTHING BLINDLY EVEN IF THE SMS IS FROM GOD !!
Although I never act on such messages, out of curiosity, as I always do, I decided to check the chart. This stock happens to be listed only on BSE. Since I have charts for all BSE and NSE stocks (historical too), I checked the chart till the previous day, and saw this :
On first glance, it was clearly in an uptrend but with thin volumes (the 20 day moving average of volumes was just 14,400 till that day).
The SMSs to buy increased and then I realised that it was in lower circuit already at 263.1 with a huge volume of 3.79 lakh shares. So the target mentioned was 22% from that price, that too intra day !
The text messages continued till 12 noon and one of the messages was:
I also saw the long term chart which told a story:
What is the status of that stock today? Here is the latest chart:
The stock has been in lower circuit every single day since that fateful day (22 days), with volumes in 2 and 3 digits.
Imagine the plight of those who bought it on 23rd October based on those SMS messages !!
Moral of the story: DO NOT BUY ANYTHING BLINDLY EVEN IF THE SMS IS FROM GOD !!
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