The Sensex has fallen nearly 4% in the last three days, this fall could have been more if ITC had not been in the no-delivery period. The presence of ITC in no-delivery helped the trader to go long on the stock without having the obligation to deliver the stocks.
The Sensex has fallen nearly 4% in the last three days, it could have fallen more but its fall was contained by ITC , since the stock was in the no-delivery period, inform analysts.
The presence of ITC in no-delivery period helped the trader to go long on the stock without having the obligation to deliver the stocks.
ITC proved to be a big help to the Sensex three days back, when the Sensex witnessed an intra-day volatility of over 200 points, and during this time ITC went up by almost 9%.
That was the day when ITC went into the no-delivery period after which markets came off their lows of 250 points.
ITC will be coming out of the no-delivery period on September 28. Any stock goes into the no-delivery period for a total of seven days.
However, analysts believe that if the markets are still weak when a stock comes out of the no-delivery period, the stock could fall, since usually people build long positions on stocks during the no-delivery period and then square off all their positions together on the 8th day.
In the current situation, if the market does not change, then it is possible that ITC will fall on the 8th day when it comes out of its no-delivery period.
Other stocks like Pidilite have gone up by 26%, and it is the no-delivery period till September 26.
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