Huge volume at round figures

[sudhakar1980]

Why people buy when there is huge sell order say sbin @262 sell order of more than 1 lac but people buys it and sbin goes to 263 here also same story, and sbin moves to 264 and continues, those selling on round figures are idiots or what why they sell when price is moving up, what is there system strategy?

 

[travi]

Why people buy when there is huge sell order...

This is the basic fundamental of the stock markets

say sbin @262 sell order of more than 1 lac but people buys it and sbin goes to 263 here also same story, and sbin moves to 264 and continues,

Ever heard of Bulls taking out bears and vice-versa? This is just one of the possibilities.

why they sell when price is moving up, what is there system strategy?

Another possibility, they've got news that eg. Yes Bank will bump up a higher %, so dump SBI and go Yes...

 

[Shikamaru]

Its part of accumulation or Averaging...
Also this may be Institutional buy to trap retailers...
During Fall after exhaustion there won't be any support
and institution sell huge volume to drive price more deep
and there averaging at high price or Round number make huge return...
or vise versa....
This may another theory in that buy

 

[sudhakar1980]

My question is that why @ round numbers like 262,263 so many sellers why not at 261.90 , 261.75 , i feel that it could be retail sellers who tell the broker over phone sell at 262 or 263, i do not know this only brokers may know this.

 

[sudhakar1980]

you r correct i feel

 

[Shikamaru]

My question is that why @ round numbers like 262,263 so many sellers why not at 261.90 , 261.75 , i feel that it could be retail sellers who tell the broker over phone sell at 262 or 263, i do not know this only brokers may know this.

Whole number having certain characteristic and many trader
put limit orders around Whole number, for me its easy to type
Most of entry will in be in whole number and exit above are below
whole number, I observed this quality of whole number in MCX

May you can get different theories from other members

 

[mastermind007]

Why people buy when there is huge sell order say sbin @262 sell order of more than 1 lac but people buys it and sbin goes to 263 here also same story, and sbin moves to 264 and continues, those selling on round figures are idiots or what why they sell when price is moving up, what is there system strategy?

Since you've already decided that their strategy is idiotic, why do you even bother to know about it?

Continue with your own wise strategy and gain from these idiots!

 

[mastermind007]

My question is that why @ round numbers like 262,263 so many sellers why not at 261.90 , 261.75 , i feel that it could be retail sellers who tell the broker over phone sell at 262 or 263, i do not know this only brokers may know this.

It would be very rare for retail brokers to converge consistently at round numbers.