It was “Game of the Thrones” if you still try to figure out what really went on, in the CSE, for the last five trading days.
The game plan of LOFC run
Last week’s LOFC rally was the most dreadful fiction drama of the 2020-2023 Bull rally, directed under the leadership of a Brokering Firm with the support of some HNWIs and a man who has an age-old (in)famous nickname.
Another two brokering firms agreed to support the “script” at the last moment, sighting the benefits could be gained on their personal accounts, with a free ride on the rally.
The group involved in staging the drama had understood their main threat as CLC counter which was the hot favorite among retailers by that time and agreed on “shooting CLC down” with some devastating tactics, in order to create and spread out a negative sentiment across.
The first step was to buy 2-3 million shares from the CLC counter on 5th Friday.
On that weekend an SMS was started circulating among the retailers, stating that an SEC inquiry is to be carried out on CLC price movement.
Meanwhile, many “generous” low counter Investment advisors of some brokering firms, were seen busy, calling their clients and urging to exit from CLC counter put forwarding the fabricated news that CLC may come down to Rs 50/- because of the SEC inquiry, while table the suggestion that “there is an opportunity with LOFC …. It might move up on Monday ”.
Parallelly, a well-organized team started posting many negatives on CLC and positives of LOFC in FB , on WEBs, and in WhatsApp groups.
There were two master plans prepared for the last Monday, The first was to bring CLC down towards 25% price band by selling the millions of shares bought on the previous Friday for the same purpose, and then to drag down the ASI index creating havoc among the retailers especially the margin traders.
On that morning once they understood that the first step was not successful as CLC witnessed a strong recovery from low 25% with some intense buying from retailers, and then decided to deploy the vicious “plan B” of pulling down the ASI.
Around 5000 shares of NIFL were sold to serve the purpose on that Monday and it finally brought about the expected results by making the indices turn red with some 350 points and then giving the green signal to start the frantic rally of LOFC.
Strength of CLC and the future of CLC
Even after the artificial sell down of three million shares at the beginning of the last week, the counter managed to recover strongly by the end of the week indicating how strong the CLC bull is.
Technical graphs indicate a possible breakout tomorrow. The moment CLC is able to break the 85/= point it will be making a “Strong Buy” signal appear which in turn makes the Bull uncatchable.
Many brokers recommended the CLC counter on Thursday / Friday and were brave enough to give a target price of XXX maybe they just started to believe in the LOCH road map, after witnessing the way LOFC traded last week.
The Budget has no impact on CLC price as CLC has an important role to be played in Singapore early next year with LOLC ASIA.
Appreciating a share by 75% on a single day after introducing the price band rule, was a fantasy play by any means. CLC is the best candidate for any such 75% event in the future ….. maybe in the next week or a week after ..… who knows …?
Last edited by ForeigNer on Sun Nov 14, 2021 3:37 pm; edited 1 time in total