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How to predict Stock Price crash or Expansion during Earning Result Season?
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We have seen that a stock price crashes just after Result announcement if the results are not good.
More mesmerizing is the fact that a company post a stellar sets of results yet it crashes or shows no upward move.
Sometimes, the stocks starts getting bearish a month or few days before the result date. How do the market participant get an idea of upcoming disaster for that stock and starts dumping it?
These are some of the things I will talk about in this article through a example that will help you understand.
Few months back there was a lot of chatter about Trent Limited ( a Tata owned company listed in NSE and BSE which does retail business in fashion and lifestyle and owns the Zudio brand along with Zara (India Business). The share of this company was on fire and in a short span of time of nine and half months Jan 2024 to Sep Mid 2024) it zoomed from Rs 3000 to Rs 8200 approx giving a return of nearly 175%. However, from October 2024 Onwards it was on downward spiral and right now it is trading at Rs 6500.
On 7th November 2024 it posted its Result which were very good. Here is the highlight of the Result
