CG Power - Retail Investors may be seen turning from SELLER to BUYER now

By Research Desk
about 3 years ago

CG Power stock was in UC last week, with volume seen rising for last 3 days to average 19 lakh shares daily, with entire volume marked as delivery, as stock is in T2T or BE segment. This volume is seen high, which is about 200% of 3 days volume, prior to last 3 days, which implies that, value buying is ssen, with volume seen having shrunk, as yesterday we saw closing at almost day high of 79 plus. We will not be surprised to see the same investor, seen a desperate seller 2 days back, will now be seen a keen and impulsive buyer. Reason is simple, because stock started moving up on higher volumes. But this is not the "Art Of Investing" while such buying and selling, based on the trend is advised by the Amateur TV Anchors and Experts on the Channel.

We carried a note on CG Power on last Tuesday as well here in this section. Reason of buy call is enumerated to member LG section. CG Power shareholding pattern, as at 30-6-21, showed that institutional investors increased their stake to 22.91 cr shares, as at 30-6-21, from 21.55 cr shares held on 31-3-21. This is in spite of HDFC Fund having reduced their stake by 2.21 crore shares in June quarter to 2.95 cr shares (from 5.16 cr shares), which were lapped by FIIs.

Individual retail shareholders also seen reducing their holding to 29.23 cr shares on 30-6-21, from 29.54 cr shares on 31-3-21, though shareholders increased to 1.69 lakh investors in June, from 1.54 lakh investors on 31-3 21. Same thing seen with HNIs, reducing holding to 9.31 cr shares in June, from 10.13 cr shares in March 21.

This is usual of retail investors to buy a rising stock and exit from the falling one, as they are seen most impulsive lot of investors, without even acceding to advice of the expert.

This is not a buy recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone

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