News that affect stock prices

I started trading some four months back, and very often I have started the day well and then some news comes in and everything gets messed up. Some time back it was the IIP numbers. Recently I had bought DLF and then news came in about the RBI making a decision regarding the real estate sector so DLF fell. Yesterday I had a short position which I closed with a decent profit, but then the Korean news came in and the stock fell even more, but I missed that profit. Today I had two long positions when the IIP news came and spoiled the party (this is the second time with IIP).

So where do we get such news that affect the stock prices and the stock market as a whole. Generally people have some sort of advance knowledge and trade accordingly. But people like me who sit at home don't know where to get such news from.

By the way, I bought HMT yesterday at 78 on my broker's recommendation for a target of 85 over the next ten days, but it started falling yesterday afternoon and broke the stop loss today at 73. This was because the entire market fell, right? I haven't sold off yet.

While you all are right that technical analysis is bound to report the health of the stock, I've faced this IIP problem twice now. Even if the stock itself has no problem, when some negative news comes in, it messes everything up. Over the long run, the stock's fundamentals are bound to take it up, but my concern is only with intraday.

Most of my broker's calls have been successful, so I can't understand how he came to recommend HMT. I bought 500 on Thursday but the market fell because of the Korean news. I also trade in stocks whose daily range is known. Ballarpur generally moves between 41 and 43 these days, Edelweiss between 63 and 65. At least one of my day trades is in one of these shares. If Ballarpur is at around 43 or 43.50, I short 10000 and wait for a 1 or 1.5 rupee fall. The stock doesn't have anything to take it suddenly up to higher levels like 47 which is my stop loss level.

On Friday, both Ballarpur and Edelweiss were lower than their daily lows, so I bought them, hoping they would go up, but then the IIP news came and the stock went down even further. If I had known beforehand that the IIP news was going to come, and specially if it was going to be negative, I could have shorted and made a heavy profit.

As I've said earlier, I am still new to the market, and am making mistakes and learning, but it would be much better if I made fewer mistakes.

HMT went up for no reason at all, to touch 81.20. Opened at 73.80, made a low at 72.00, then went up really sharply. If technical indicators showed that the stock was on the decline, how can it go up this way? Made a profit when I was going to sell off at a loss!

It seems that my sentence "If technical indicators showed that the stock was on the decline, how can it go up this way?" has been taken the wrong way. I'm not criticizing the persons who looked at the chart and said that the stock was in decline. I am not saying you have been proved wrong. Even with my limited knowledge, I can see a lot of red in the chart. What I'm asking is if it is possible to explain the sudden spike.

About the stop loss, my broker had given the stop loss and when I called him later and told him that the stop loss had been triggered, he said you can at the most lower it by one more rupee, which was also broken later. However, my thinking was that the stock has fallen because of the entire market falling, if the market had remained stable and it had fallen alone, I would have definitely seen it as a signal to exit. Of course, the stop loss price was given for a reason, that once it crosses that limit, it might face heavy resistance trying to come back, but I decided to hold it for one day more and have avoided a loss that way.

As to the part about news affecting stock price, the replies all indicated that if the stock is fundamentally strong, it won't be affected much by news. I've taken a look at some shares like Archies, Skumars, Nitco, Deltacorp, etc, which remained stable last Thursday and Friday, but I still think negative news does create some problem and cannot be simply ignored.

As to the swing trading part, I generally avoid taking delivery. I take my broker's calls, see if the stock is trading lower at the present time, buy and sell off later in the same day at a small price rise. On the intraday margin, I can buy in bulk, which is not possible if I were to take delivery. I can buy and take delivery of maybe 100 shares, but on margin, I can buy 500 to 1000 in a single day and make just about the same kind of profit that I would have made with 100 shares delivery based trade. Of course, if the price falls, I have to take delivery, but then I sell off the next day. This is where things had gone wrong with HMT. :lol:

Hello rg, no need to apologize. I should have written my earlier post in a better way. I am sorry I led to this. Thanks for the replies! :thumb:

I'm just starting to learn technical analysis and can only understand supports and resistances so far. The chart you've shown is beyond me!

I've found another stock that trades sideways - GAIL. Its a stock that has been in a particular range for a long time. What I'm planning to do is buy it at the lower end of its range, and if the price goes up in that particular session, I'll sell, or else I will hold for two or three days. What do you think?

I found another stock with a sideways range. Don't look at today's range and see the previous months' range.

ArevaT&D had a low of 281 on 27th August, but ignoring that, after that and some time before that as well, it has never fallen below 289.00. Sometimes its fluctuation is of only one or two rupees, but most of the time it has had a 5 rupee fluctuation at least. It is also cheaper than GAIL's 480 to 495 price.

This should mean a stable sideways trading stock, right? But today (26th November), its low was 263.10. I am not sure why it happened. From the beginning of August, its really low low was 251.55 on 3rd August, and that was only once. I was thinking that I would stop trading in other stocks until the market becomes a bit stable, but now I'm starting to doubt the safe range trading as well.

The fall in Czech stock prices, which in November hit in particular power producer CEZ and Erste Bank, was evidently caused by uncertainty on the market caused by problems with public budgets in some eurozone countries, analysts polled by CTK said.