As usual the stage is nicely set for a devil's play. Name of the play is "Sucker Rally" .
Its the time for most of the new comers to loose their hard earned money in few days or few weeks, perhaps. There will be a lot of Guru's preaching about the future of certain corporates and their plans to expand in various new sectors.
Here are few names who I can nominate for the Best Actor role , in coming few weeks.
- BLUE *****
- ECL **
- CIFL ****
- CLND *****
- CSF ***
- NIFL ***
*** more the stars more the possibility
A temporary rise in a specific stock or the market as a whole. A sucker rally occurs with little fundamental information to back the movement in price. This rally may continue just long enough for the "suckers" to get on board, after which the market or specific stock falls.
Also known as a "dead cat bounce" or a "bull trap".
A sucker rally is a buzz word describing a rise in price that does not properly reflect the true value of the stock. For example, suppose that two high-tech companies, "A" and "B", see an increase in stock price due to reporting strong financial statements, and a separate high-tech, company "C", sees a rise in stock price. If the real reason for the rally turns out to be because of potential acquisitions of A and B, then C will have had a sucker rally, rising along with A and B.