Reasons for Stocks Fluctuation
What is the primary reason for stock price fluctuation?
The most important thing we need to understand with reference to the stock market is the dependence of demand and supply of the stock.
Bullish stock: Bullish stock can be termed as and when demand is high the price also increases.
Bearish stocks: Bearish stock can be termed as and when the supply is high the price will decrease.
What are the factors affecting stock prices?
1. Seasonal changes:
Indian economy chiefly depends on monsoon as 75% is received from agriculture
2. Political environmental changes:
like election results and budget
They play a vital role in India raising the products demand
4. Financial crisis of developed countries
This could create deep depression on worldwide economics
6. Change of government polices and norms:
Which impacts a specific industry
7. Geopolitical reasons:
With worldwide indecision and uncertainty.
1. The investor or trader has to monitor the timely changes like acquisitions, merging, debts of the company or any other events and proceedings that had taken place in management and then reconsider his investment plan.
2. Diversification of investment is necessary when traders holds the majority of stocks and offer the shares when there is less demand.
3. The stock will be sold on a lower price whenever the supply is high and this may influence the impact in company’s earnings.
4. The price in the equity market can be changed by the profit or loss of the company.
5. When the earnings are higher than likely, then the value of the stock will increase.
6. The stock price will reduce when the earnings are lesser than likely.
7. Economy plays a vital role in the uncontrollable change in price.
8. The impact of the economy status reveals on the stock price.
9. Several theories narrate the reasons for change in prices.
10. Investors believe strongly that there is no specific reason for change in price.
Expert advice is provided by the technical analyst of Enrich Financial Group as they have sufficient market knowledge and technological advancement with the state of the art technology trading platforms to figure out price movements to trade in short and long term.