Many unscrupulous people are now sending "Tips" via SMS giving targets to stocks that are of very bad quality. In Market Parlance, these are called Pump & Dump schemes, where "Operators" or "Manipulators" increase the price of a stock by various means like Circular Trading. Circular trading is where a group of people buy and sell stocks on predefined prices, but try to make it look natural. The increase in volume & price attracts public interest. When the stock reaches the predefined targets set by the manipulators, the manipulators sell out and the public is left holding stock that tanks like a stone.
One such recent example is that of Kushal Tradelink.
The stock had become a darling stock with no downfall or correction for a really long time and now finds itself locked at lower circuit and with no buyers.
Another such case was that of Onelife Capital Advisors which had a similar chart like that of Kushal Tradelink.
Operators try to create artificial volumes in the market by circular trading and increasing the prices of these stocks. This process continues till volumes expand and the price goes up substantially. At once the general Public buys these stocks on the expectations of quick money. The manipulators sell their shares to the Public and the stock starts tanking. Once the panic sets in, the public tries to exit, but finds no buyers for the shares they hold while the manipulators make huge gains at the expense of public money.
We caution you against investing your hard earned money in such "operator driven" stocks.
It has often been found that acting on tips of these "Operators" out of greed without a proper understanding of these companies leads investors to lose significant money. We urge you conduct a thorough financial review before investing in these companies for the benefit of your financial health.
The caution stock watchlist has been created using a strict surveillance mechanism by tracking tips and other marketing communication sent by unscrupulous market elements.
While this list is not exhaustive, we are constantly going to add more stocks that we believe are prone to manipulation.
Disclaimer - This list is only for your education and information purposes and should not be considered as a recommendation or research on any of these stocks. This page shall not be considered as a solicitation for any services and the information is general in nature and not tailored to the needs of any person, entity or group of persons.