How did this happen?

huineng · #1 11th September 2006, 09:21 PM

Today (11th Sept) noticing the steep fall in Nifty and IT index I placed a limit order for 495 for Wipro at 2.00PM. It was fluctuating around 500. Suddenly at 3.25 a trade for 495 flashed and swung immediately to 499. Until that time the ticker was moving logically. My order was not fulfilled. I know that there must have been earlier orders for 495. My question is how can the price suddenly jump 5 rupees just for 5 seconds when the order book was showing offers to buy at 498 etc?

rasasen · #2 11th September 2006, 10:03 PM

Ask Damodharan

Agilent · #3 11th September 2006, 10:30 PM

Quote:

Originally Posted by huineng

Today (11th Sept) noticing the steep fall in Nifty and IT index I placed a limit order for 495 for Wipro at 2.00PM. It was fluctuating around 500. Suddenly at 3.25 a trade for 495 flashed and swung immediately to 499. Until that time the ticker was moving logically. My order was not fulfilled. I know that there must have been earlier orders for 495. My question is how can the price suddenly jump 5 rupees just for 5 seconds when the order book was showing offers to buy at 498 etc?

Huineng

Click on intraday chart in http://www.nseindia.com/marketinfo/e...l=WIPRO&flag=0

you will see that stray deal towards close (bottom of vertical line reaching 495).

Looks like a stage managed deal between two partners , one willing to sell at 495 (even when there were buyers at 498) and the other simultaneously placing a limit buy order at 495 ... could be for a token small lot ... idea being to try 'crack' the price sensing some panic selling to follow

A trick resorted to by short sellers in a weakening market ( obviously didn't work today, but tomorrow is another story)

AGILENT
PS By the way, take care when buying in a falling market .

Varied opinions today on the market action , but Deepak Mohoni ( TA ) seems sure it's the start of an intermediate decline ... which if true, means .... stay away, longs !

AGILENT

rasasen · #4 11th September 2006, 10:51 PM

Dear Sir,
Can you please explain why, who and how the nifty being manipilated after 3.30 ?

Agilent · #5 11th September 2006, 10:54 PM

Quote:

Originally Posted by rasasen

Dear Sir,
Can you please explain why, who and how the nifty being manipilated after 3.30 ?

Can't follow yr query ... this happened around 3.25... havn't u seen the link ( intrady chart)

AGILENT

huineng · #6 12th September 2006, 08:53 AM

Hi AGILENT,
Nice to hear from you. What I learnt is to place the limit orders at 11.00PM the previous day.
rasasen, when you are trading don't you get surprised with such quirkish happenings? Will asking Damodharan get us a rational answer? That is why I ask the members here.
We have to share our knowledge so that we can trade better.
What I have reported actually happened as AGILENT's link will show you. And it is against the norm and puts retail investors under a terrible disadvantage.
May be someone here may have the resource to track this kind of queer happenings and report it to SEBI.
Hence I request you to be more contributive so that all of us can benefit.
After all we are putting our money where our mouth is and not doing paper trade.

sanjay bhandia · #7 12th September 2006, 09:15 AM

agilent,
do you belive in dipak mohinis predictions. i always do the opposite of his tips and have been a great winner. try the same

Agilent · #8 12th September 2006, 07:49 PM

Quote:

Originally Posted by Agilent

Huineng

Click on intraday chart in

you will see that stray deal towards close (bottom of vertical line reaching 495).

Looks like a stage managed deal between two partners , one willing to sell at 495 (even when there were buyers at 498) and the other simultaneously placing a limit buy order at 495 ... could be for a token small lot ... idea being to try 'crack' the price sensing some panic selling to follow

A trick resorted to by short sellers in a weakening market ( obviously didn't work today, but tomorrow is another story)

AGILENT
PS By the way, take care when buying in a falling market .

Varied opinions today on the market action , but Deepak Mohoni ( TA ) seems sure it's the start of an intermediate decline ... which if true, means .... stay away, longs !

AGILENT

Guys

See this and also the chart therein
http://www.traderji.com/38937-post25.html
Something similar (on the long side) happened with ONGC on that day ...

Rough maths will show the volumes involved ... the tallest spike shows around 1,30,000 shares being bought by some desperate buyer at around Rs 1345 ... so that's nearly Rs 17.48 crores !! (and mind u there were many such spikes around 3.20 pm onwards ). Obviously some big punter or FII ?

Rough maths will also show that by end of day, all these buyers had notionally lost almost Rs 50 per share when the price collapsed to 1300. ( Thats a loss of Rs 65 lakhs for that single spike ... possibly a single buyer)

Ashwani Gujral had talked on CNBC abt this incident (calling it 'extraordinary') and attributed it to somone trying to manipulate NIFTY close for that day (ITC also was involved).

So Huineng : you may have some answer to your observation of the unusual slump in WIPRO (of course this was posible manipulation by shorts rather than longs)

AGILENT

huineng · #9 13th September 2006, 08:48 AM

Yes Agilent, I have some answers now. Happy to report that I got it for 491 the very next day.

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