Good company at a great price

[Rajasekaran1976]

Hi All,

Thanks for your input. My basic question was why is this WIPRO stock moving lower when there is an exceeding demand for the same?

 

[jagankris]

Hi All,

Thanks for your input. My basic question was why is this WIPRO stock moving lower when there is an exceeding demand for the same?

Promoters holding is very high and retail holding is very less.

 

[mohan.sic]

Sir I just want to correct you for that being specific I am talking about Nifty IT where Infosys today's price is 1180, HCL Tech price is 930, TCS is highest at 3500, even the tech mahindra which showed loss in it's financials from IT sister company is at 666, hence most of the top IT companies are at different levels.

Hi,
If a stock is cheaper or costlier is not determined on basis of its current market price.
Valuations are done on cash flows, per share earnings, etc
Please study fundamental analysis or any valuation method and you will easily understand what i said.
all the best.

 

[Ravishankar3]

Hi,
If a stock is cheaper or costlier is not determined on basis of its current market price.
Valuations are done on cash flows, per share earnings, etc
Please study fundamental analysis or any valuation method and you will easily understand what i said.
all the best.

Sir
You are absolutely right that the price depends on different factors which include cash flows, EPS, P/E ratio and many others but as their income is depending on outsourcing ... any rise or fall on Forex also effects.

 

[mohan.sic]

Sir
You are absolutely right that the price depends on different factors which include cash flows, EPS, P/E ratio and many others but as their income is depending on outsourcing ... any rise or fall on Forex also effects.

yes, Indian IT revenues are heavily dependent on western banking/financial companies and forex rates effect their earnings.
But most of these contracts will be long term and IT companies will hedge against forex fluctuations. So these rate changes will not really impact much.

 

[Ravishankar3]

Thank you So much for your valuable contribution and enhancing my knowledge towards a clear and better side.

 

[Rajasekaran1976]

OBV is in the negative. Does that say anything about the stock?

 

[mohan.sic]

OBV is in the negative. Does that say anything about the stock?

No. That does not say anything.
And the question is also not accurate. When you say OBV, 1) OBV on what period ? Daily, weekly etc & 2) How much data is taken ? 1 moth, 1 year etc ... When we had to analyze based on any indicator, these things are very important.

 

[Rajasekaran1976]

OBV is negative for the daily chart for one month period.

 

[mohan.sic]

OBV is negative for the daily chart for one month period.

OBV is negative on month period, or positive on 6 month period.... this standalone information is just useless.
First thing you need to do is, Read and understand the definition of OBV, and its formula. This will give you understanding of why the indicator moves, why it goes positive or negative and if this info is really useful to predict price movement. Once you understand the math behind any indicator, your perspective towards these indicators will completely change.