BATA INDIA (Update): Not convinced with the bullish story
In the previous post, I spoke about a lucrative short bet on Bata. The reason was simple, weak evidences on the chart.
Today I reanalysed the stock to try and come up with a revised analysis as the resistance has been breached and the stock is trending upwards. However, upon a close look, the story which is being told by the consortium of price, volume and RSI is not in agreement with what a strong bullish stock should look like. The evidences suggest that the ongoing rally is being supported by a few big players who are influencing the price. The retail participants are majorly selling the stock and we know that without retail participation in buying, no stock can continue its rally.
Please refer to the images below for a detailed analysis. I intend to look into the quarterly data soon to try and pick up on whatever is encouraging this \’spike\’ buying.
Adios, for now!