Market Watch

NTC Shares tumbles again: Panic Attack

Published by Octron on September 3, 2008

After good respone for NTC Shares: Domino Effect & Herd Nature (At Jamb), I am writing this article based upon Panic Attack theory. As soon as market started, people were queing up to sell their NTC shares. General panic theory suggests that, whenever people are in most troubled situation people will make the best decision to get out of the situation. The fear of losing everything makes people make the best decision to save whatever they still have.

So, when the NTC shares took downturn on 01 Sept 2008 at mid-day transaction hour, people who had bought their shares at or above 1000, started selling off their shares at 1300. That was still a good return ~30% withinn 2-3 days. With further increase in supply due impaitient seller decreased the price of shares and second group of sellers arised due to panic attack.

On 02 Sept 2008, the scene was pretty same just the class of sellers were different;
The sellers who bought at 800 or more. They want to make atleast marginal profit before waiting long for NTC shares to yield dividend or again price hike. So, again share price was victim of ghata ghat…

03 Sept 2008 continued the tradtion of downfall, with thrid class of sellers the IPO Buyers (Rs. 600 and more…). They gave their best to get maximum return. One of the transaction on 03 Sept 2008 traded even 500 scrips. So its pretty evident how people are rushing to sell before they lose everything – Panic Attack.

This was just one side of the story which is actually happening on the share market currently. But what about the people who bought at 1000, 1300 and even at 1481. What are they doing or what will they do ?

They are facing the biggest delimma; Neither they want to sell and get into loss, nor they want to keep holding such tainted shares and further get into much bigger debt in future.

Any suggestions from our readers as comments would be very much appreciated !

PS: 03 Sept 2008 (NTC trading Analysis) is posted in our forum. Dont miss it ! . You can register and ask any queries in the forum for FREE.

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