Investigate any suspicious movement of Stocks

i. Identify suspicious movements:
At times, due to the involvement of the speculators or operators, some stocks turn highly volatile e.g. the overall market is bearish, yet there is a significant surge in a particular scrip which is neither supported by market conditions nor the fundamentals of the company. This could indicate that market participants are artificially pushing up the stock price. Likewise, if a stock falls significantly when the markets are doing well might indicate that participants are offloading their position either to pick the stocks at lower valuation or just booking profits from the artificial price created earlier. One should stay away from such stocks.

ii. Investigate before investing:
If one sees such suspicious activity in a stock, one should investigate thoroughly in such stocks before investing. There are various criteria (price-earnings, market capitalization and price variation) to scrutinize these stocks. One should check if the performance of the company in the past, the fundamentals of the business and other key parameters are supporting the stock valuation.

iii. Better to stay away from such stocks:
When such movements are seen in a stocks, investors should be vigilant and should refrain from investing in them. If one is already invested in such stocks, then it is advisable that he exits the positions.