- Wealth PMS (50L+)
We’ve spoken about Castex, which used to be Amtek India. It continues to fall to the circuit limit every day since it hit Rs. 360 a share, and is now at Rs. 86 per share and shows no sign of even trading a few shares.
The parent of that company is Amtek Auto. This company too has been hammered, and has no “circuit” protection because it’s in the Futures and Options category. It has fallen from Rs. 175 in July to Rs. 63.6 today, a 63% fall!
Here’s a daily chart:
And a weekly chart:
It’s back to the levels it was at in 2014 January.
There are way too many reasons.
But all of this, really, are in hindsight. The problems have been visible, and the FnO piece might have been keeping away the short positions. Tomorrow something new might come and spike up the stock, or take it down much further.
With so much unknown, trading this stock would simply be like entering a casino. Someone else will make the money and you’ll see the thrills of ups and downs. There’s a reason this post is marked “Suckered”.