When a stock rises out of nowhere on good volumes, it does attract lot of attention. Lots of times, it can be just operator activity to attract attention and pull in gullible traders/investors but sometimes there are genuine reasons and chart just reflects some smart insider buying.
Pipavav stock caught my attention recently and here's why
Look at Pipavav stock Daily Chart
Just a simple observation: somebody is buying Pipavav and that too big time. Now - Pipavav is Pipavav Defence and Offshore Engineering Company Limited. With Modi Govt announcing FDI in Defense - Is this company up for something? I don't know. I am just speculating. There were rumours of stake sale to Mahindra. But company came out with this statement on Feb 12-
"There are no negotiations/agreements which the company has entered into which requires disclosure under clause 36 of the listing agreement"
What happened - stock rallied some more. Very interesting. Now, I have no idea all this is for real or not. But as stock watcher - keep an eye on weekly chart - the stock has a major resistance at 94-95.
The stock is making a move and should be on watch list.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers