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📕 A Quick Story:
Ipca Labs and the rise of its stock price by +40% in the last 2 months.

🔸 For the last 5 years, US FDA had imposed a complete ban on import of any drugs from #IpcaLabs

🔸 The reason cited by #USFDA was manufacturing lapses at Ipca's factories

(1/5)
🔸 As the coronavirus pandemic broke across the world, a drug called #Hydrochloroquine (HCQ) was found to be effective against the virus.

🔸 India's pharma companies have always been producers of cheap generic drugs.

(2/5)
🔸 As the HCQ news was announced, India imposed a complete ban on export of HCQ drugs.

🔸 As many as 30 countries, including the US approached India to get a supply of #HCQ tablets.

🔸 US went as far as threatening with a "retaliation" if India does not supply them HCQ.

(3/5)
🔸 Indian Govt lifted ban on the export considering humanitarian grounds.

🔸 The total market size of HCQ drugs in India is ~₹150 crore.

🔸 Ipca Labs holds a mind blowing 82% of market share of HCQ drugs.

(4/5)
🔸 US FDA quickly makes an exception for Ipca Labs and permits them to supply HCQ drugs to US.

🔸 Ipca Labs announces that it is fully prepared to meet the world's demand for HCQ drugs.

🔸 As this news reaches the stock markets, their stock price rises!

THE END.

(5/5)
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Related hashtags

#IpcaLabs #USFDA #Hydrochloroquine #HCQ

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StockTalk
@stocktalk_in
🧠 TRADING PSYCHOLOGY:

1️⃣ When your trade goes wrong, you’ll find it extremely difficult to exit the trade and book a loss.

2️⃣ Your mind will trick you into thinking that the trade might work based on some random information.

3️⃣ This “waiting” will work 9/10 times.

(1/4)
4️⃣ Every time it works, your mind will reward you with a rush of dopamine (feel good sensation).

5️⃣ It will reinforce your thought process of “waiting till it works”.

6️⃣ Finally, the 10th time when it doesn’t work, you end up waiting till the trade blows your account.

(2/4)
7️⃣ The trick to avoid this cycle is to identify your state of mind.

8️⃣ The moment you identify that you’ve entered the “hope trading” mode, just quickly close the position.

9️⃣ Don’t allow yourself time to think about it. Just click the EXIT button like a machine.

(3/4)
Read 4 tweets
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StockTalk
@stocktalk_in
📕 A Quick Guide on OPEN INTEREST (OI)

1⃣ What is OI?
OI is simply the number of outstanding contracts (open positions) for a given stock

For eg: A stock having OI of 1 lakh means there are 1 lakh open positions (long & short)

* OI data is available only for F&O segment

(1/7)
2⃣ How is OI calculated?

As the name suggests OI represents the "interest" of traders in a given stock

For eg: If trader A has 10 long positions and trader B has 7 short positions then the total OI will be 17

That means buying interest is more than selling interest

(2/7)
3⃣ What is Put Call Ratio (PCR)?

In F&O terminology;
🔸Long positions = Calls
🔸Short positions = Puts

PCR = Puts / Calls

4⃣ Calculating PCR in the above eg:
Calls = 10
Puts = 7

So PCR = 7/10 = 0.7

(3/7)
Read 7 tweets
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Shashank Shirke (StockTalk)
@stocktalk_in
How "Short-covering" rallies really work:

1) Let's say, a lot of investors have taken short positions in a stock expecting its price to fall in the future due to some bad news

2) As time passes, the stock price seems to hold steady & doesn't show any signs of falling

(1/2) 👇
3) As more time passes, these short sellers lose confidence in their initial idea of expecting the stock price to fall

4) They now decide to close their short (sell) positions. To close their positions, they have to buy the stock to square-off

(2/3) 👇
5) This buying pressure triggers a massive demand in the stock thereby increasing it's price rapidly

6) Looking at the price go up, more buyers (fresh positions) join in taking the prices even higher

All this results in a massive up move known as a "short-covering" rally

(3/3)
Read 3 tweets

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