Few basic questions :)

[Bigbear]

My Basic understanding
If a "manipulator" wants to rise the price of stock, he just puts a buy order at a higher price than the CMP .
if a "manipulator" wants to push down the price of stock, he just sells the stocks at a lower price than CMP .
Question!
If i buy 100 shares of Reliance @ 800 Rupees and sell it at 100Rupees each.. What will happen to the stock price?? Will it go down to 100 Intraday? [ I hope not !]

And

Why do stock/market rallies in downtrend , instead of just going down???
If market has to rally in downtrend, someone has to catch the falling knife!![ Smart money] Because it can rally only if "Buying" takes place..

I dont plan to catch the falling knife, im a trend trader,I just want to know why people Buy [ and stopping downtrend temporarily] ?? [ i know they profit, but how much is risk:reward?? ]

 

[uttamkamlesh]

My Basic understanding
If a "manipulator" wants to rise the price of stock, he just puts a buy order at a higher price than the CMP .
if a "manipulator" wants to push down the price of stock, he just sells the stocks at a lower price than CMP .
Question!
If i buy 100 shares of Reliance @ 800 Rupees and sell it at 100Rupees each.. What will happen to the stock price?? Will it go down to 100 Intraday? [ I hope not !]

And

Why do stock/market rallies in downtrend , instead of just going down???
If market has to rally in downtrend, someone has to catch the falling knife!![ Smart money] Because it can rally only if "Buying" takes place..

I dont plan to catch the falling knife, im a trend trader,I just want to know why people Buy [ and stopping downtrend temporarily] ?? [ i know they profit, but how much is risk:reward?? ]

Short selling is followed by short covering for locking profits........which brings short term rally....

There are four things happening in the market actively....

BUYING
SELLING
SHORT SELLING
SHORT COVERING

Kamlesh Uttam

 

[Bigbear]

Thank you kamalesh. But Short selling in is allowed for Intraday trading in stocks . So overnight Short selling & covering is ruled out in equities. So how do we explain the same question in downtrend?

"Why do stock/market rallies in downtrend , instead of just going down???"

In futures, i can see Short selling and short covering as it happened in nifty today.it came down from

Todays short selling pic