One of legendary trader Paul Tudor Jone’s sayings was “I see the younger generation hampered by the need to understand and rationalize why something should go up or down. Usually, by the time that becomes self-evident, the move is already over.”
In the Indian context, noone (including the regulatory authorities) can explain why something is going up or something is going down.
Revathi Equiment was trading at 256 Rs/share on 4th Dec.One week later , today it closed at 360 Rs/share…a whopping gain of 40% in a week !!
Why did it go up?Nobody knows…neither the promoters,nor the exchanges nor SEBI.
Here’s what the company announcement on NSE’s website says:
Price movement : Significant price movement has been observed in Revathi Equipment Limited. The Exchange, in order to ensure that investors have latest relevant information about the company and to inform the market place so that the interest of the investors is safeguarded, had written to the company. Revathi Equipment Limited has vide its letter inter-alia stated, “Now we have no information on operation/performance of our company to be announced under clause 36 or any information which has bearing on the price or volume behavior of our equity shares in the market.”
This price action will be now consigned to the NSE’s bin of “We asked.We got a reply.Now the matter is closed”