Why share prices are dropping while announcement of Quarter results

[narayan_k]

Hi to All

I am just wondering why companies share prices are dropping while announcing of Quarter results.

Lot of shares are dropped in this April fortnight like these one
YES BANK
IDBI BANK
HDFC BANK
INFOSYS
Axis Bank
TCS
RIL
Wipro
Petronet
ACC
Mahindra Finance
Exide Industrie
Tata Elxsi
Wipro
ICICI Bank Ltd
Bank of Baroda
Hexaware
Corporation Ban
Dena Bank
Hind Constr
IDFC
Oriental Bank
State Bnk Mysore
Sterlite Techno
UCO Bank
United Bank
United Phos

Please advice

Thanks
Narayan

 

[shubhamchugh]

Hi to All

I am just wondering why companies share prices are dropping while announcing of Quarter results.

Lot of shares are dropped in this April fortnight like these one
YES BANK
IDBI BANK
HDFC BANK
INFOSYS
Axis Bank
TCS
RIL
Wipro
Petronet
ACC
Mahindra Finance
Exide Industrie
Tata Elxsi
Wipro
ICICI Bank Ltd
Bank of Baroda
Hexaware
Corporation Ban
Dena Bank
Hind Constr
IDFC
Oriental Bank
State Bnk Mysore
Sterlite Techno
UCO Bank
United Bank
United Phos

Please advice

Thanks
Narayan

I'm also very confused that why share prices fall after announcing of results.From last 2 days now i have made strategy that i always short that share whose result is to be announced on same day.This way i have made profit 3-4 times.
The basic reason for falling of share even after good results is that mkt. expectations would be more than the actual results
If company's reults announced with gain of 200% but mkt expectation were 250% then it will show sharp fall.Means It doesn't matter that how much profit has been increased.The only thing that matter is are the results upto the mark of mkt. expectations or not.
However i'm a newbie ,only 1 month of trading experience. These are just my thoughts.It would be better if you ignore my suggestions.:rofl:

 

[PGDIMES]

I'm also very confused that why share prices fall after announcing of results.From last 2 days now i have made strategy that i always short that share whose result is to be announced on same day.This way i have made profit 3-4 times.
The basic reason for falling of share even after good results is that mkt. expectations would be more than the actual results
If company's reults announced with gain of 200% but mkt expectation were 250% then it will show sharp fall.Means It doesn't matter that how much profit has been increased.The only thing that matter is are the results upto the mark of mkt. expectations or not.
However i'm a newbie ,only 1 month of trading experience. These are just my thoughts.It would be better if you ignore my suggestions.:rofl:

Good going Shubham... :clapping: almost completely explained the hype created before the results... :clap:

 

[shubhamchugh]

Good going Shubham... :clapping: almost completely explained the hype created before the results... :clap:

Soon i will overtake savant garde in reputation .Just wait & watch

 

[AW10]

Buy the rumor, sell the news - This works again and again in market. Generally, price is already near resistance level before the result and after news is out, it just gets the supply at resistance and price fall.

 

[shubhamchugh]

Buy the rumor, sell the news - This works again and again in market. Generally, price is already near resistance level before the result and after news is out, it just gets the supply at resistance and price fall.

BTW i want to know what basically resistancei is?Means how it works?
I just know that its hardf for any stock to cross resistance level but i don't know why

 

[shubhamchugh]

Soon i will overtake savant garde in reputation .Just wait & watch

Jhootha Sach :rofl:

 

[Arati Jadhav]

Thanks for great post. For trading I prefer the religareonline.com.

 

[mathewfx]

Hi to All

I am just wondering why companies share prices are dropping while announcing of Quarter results.

Lot of shares are dropped in this April fortnight like these one
YES BANK
IDBI BANK
HDFC BANK
INFOSYS
Axis Bank
TCS
RIL
Wipro
Petronet
ACC
Mahindra Finance
Exide Industrie
Tata Elxsi
Wipro
ICICI Bank Ltd
Bank of Baroda
Hexaware
Corporation Ban
Dena Bank
Hind Constr
IDFC
Oriental Bank
State Bnk Mysore
Sterlite Techno
UCO Bank
United Bank
United Phos

Please advice

Thanks
Narayan

it all depends on expectations, forecasts etc.