What happened to PNB today?

#1
PSU banks have been trading in the negative recently. PNB announced negative results just earlier today. Still PNB went UP by 3.5% by the time trading ended today !

As a newcomer trying to get his head around the stock market, I am flabbergasted. Can anyone help explain what happened with PNB today?
 

vagar11

Well-Known Member
#2
You have a good point "results were bad and stock went up".

First thing is markets are always forward looking. Even before the result, stocks will move in a direction as per the expectation of the market.

Take the case of INFY. Everyone thought result would be bad so the stock went down a lot before the result but turned out the results were good so it opened with a gap up of 6%.

In case of PNB, looks like market was expecting very bad results so the stock went down before the result and the result were bad so the stock went up.

It's all about the expectation.

If you are using a technical analysis approach. My advice would be to not worry about how stocks gets affected due to result and thinking markets are manipulated. Let the stock go where it wants to go and follow any trend following method.
 
#3
Yes, you are right. It is easier to cook up any kind of explanation of what happened after the event has happened. Classic case of hindsight bias.

And if I understand right, "gap up" orders are executed 9AM-9:15AM right before the trading for the general public starts, right? As in, the orders can be queued in in the after market trading hours, but they get executed only starting 9AM. Correct?
 

vagar11

Well-Known Member
#4
Yes, you are right. It is easier to cook up any kind of explanation of what happened after the event has happened. Classic case of hindsight bias.

And if I understand right, "gap up" orders are executed 9AM-9:15AM right before the trading for the general public starts, right? As in, the orders can be queued in in the after market trading hours, but they get executed only starting 9AM. Correct?

http://zerodha.com/z-connect/queries/stock-and-fo-queries/pre-marketpost-marketafter-market-orders

How opening price is decided.

https://www.nseindia.com/live_market/dynaContent/live_watch/pre_open_market/PreOpen-October2010.pdf


Read this. Let me know if still not clear.
 
#5
PSU banks have been trading in the negative recently. PNB announced negative results just earlier today. Still PNB went UP by 3.5% by the time trading ended today !

As a newcomer trying to get his head around the stock market, I am flabbergasted. Can anyone help explain what happened with PNB today?
It is clearly in a downtrend and yesterday was just a pullback and today a inside day. Possibly new positions taken today and even more so tomorrow. Expect it go down further on the break of the inside bar.

Watch the daily chart. Its very very clear. you could even draw a CLEAR TREND LINE. it doesn't get any better than this.

Why are you so shocked?
 

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