✓ When a Stock Rises
1%–5% | Mild Momentum
Normal buying activity, gradual accumulation, steady confidence.
Trend: Neutral to mildly bullish if volume is stable.
6%–10% | Strong Demand
Often driven by positive news, breakouts, or institutional interest.
Trend: Bullish, especially with high volume.
11%–15% | Accelerated Move
Earnings surprises, contracts, approvals, or short covering.
Trend: Strongly bullish, but volatility increases.
16%–20% | Extreme Surge
Transformational news, heavy speculation, or FOMO-driven buying.
Trend: Short-term bullish, high risk of pullback.
✓ When a Stock Falls
1%–5% | Normal Correction
Profit booking, mild negativity, or broader market weakness.
Trend: Neutral; healthy in an uptrend if volume is low.
6%–10% | Selling Pressure
Bad news, support breakdown, or institutional selling.
Trend: Short-term bearish.
11%–15% | Sharp Decline
Earnings miss, regulatory issues, or macro shocks.
Trend: Strongly bearish; recovery needs a clear catalyst.
16%–20% | Capitulation Zone
Extreme fear, forced selling, or severe fundamentals.
Trend: Very bearish short term; possible technical rebound for high-risk investors.
✓ Key Takeaways
1–5%: Normal noise
6–10%: Trend confirmation
11–20%: Emotion-driven, high volatility
Always analyze volume, news, trend structure, and market conditions alongside price.
✓ Final Note:
Price movements are signals, not decisions. Context—not percentages alone—drives successful investing.
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