Buy Zee News MktPrz: 45 Target: 66 - Sharekhan
Sell Ambuja Cement MktPrz: 98 Target: 86 - Angel Broking
Such flashing tips can be easily seen on any business channel. In fact on screens TV channels have reserved permanent slots for them. Daily Brokers will flood your mobile inbox by sms and mails of trading calls. Are these tips actually worthy and trustful?
Such tips steer the volatility in the markets. Thousands of people trust these tips and buy and sell according to it. Tips very uses the main driving factor of sharer market i.e. rumors. For example say a run a broking company with a large customer database. I send them a tip buy share X @ Rs. 100 and sell @ Rs. 150 without any technical analysis. This message reaches millions of people in seconds thanks to information technology. Now say out of million half a million takes this call seriously. They think Research Analysts are saying to buy at this prize means this share will not fall beyond this prize and purchase the share. A lot of money has been put into the market on that share at that prize. Since information of buying and selling of every second is visible to all a sudden positive reaction comes from the market. People think yes the tip was true and the remaining people also start investing in that share and the value keep increasing.
Similar but opposite pattern took place as the share reaches the target assigned by analyst. People start selling that stock, believing that it will not grow beyond that. Heavy profit booking turns the market sentiments negative and bears come into play. As a result share value again declines from the target.
This is how brokerage firms and analysts keep on riding the waves of market sentiments and keep earning the profit irrespective of the ups and down of the market.
They are analysts not prophets so they can see the future. No share in the market is bond to follow supports and resistances, as the future moving trend will not be a mirror image of the past trend. This is the reason why half the times there tips and predictions go waste. But still it is better to follow tips as you will be in sync with the market after all they are the ultimate dictators of the financial jungle.
I agree with Archit, good analysis. Its well known that market moves on sentiments and its easy to induce sentiments when it come to money and thats where analyst come into picture. Analyst plays an important role in moving the stock market and thats what keeps money moving....
ReplyDeletegr8 atleast someone is in sync
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