Still following the traditional charting technique to predict stock prices…??

Tata Elxsi is one of those IT stock which is currently in every investor’s radar. The stock has moved from Rs 829 per share in June 2020 to Rs 3575 in a year.

Investors have long been following charts and ratios to predict stock prices technically and fundamentally. But with the recent surge of retail investors what we have recently observed is that stock prices are highly influenced by sentiments.

So why not predicting stock prices and movement based on investors’ sentiments or anticipation of that particular stocks.

Below is an attempt made by extracting reviews of last few days of Tata Elxsi shares from the moneycontrol.com Tata Elxsi forum.

Extract of reviews from forum

After removing all the punctuation and stem words, 10 most common words used in the string of reviews are:

[('buy', 23),

('dividend', 22),

('long', 15),

('good', 12),

('correction', 12),

('date', 11),

('time', 11),

('go', 11),

('bounce', 11),

('new', 11)]

 

So words like buy, long, good, bounce are used highest number of times.

Second most discussed topic is dividend which is mentioned 22 times in the recent reviews.

And the word correction is only used 12 times in the latest reviews.

Apart from this figures from 3600 to 6000 are used 45 times in the reviews which hints that higher targets are being anticipated for the share in coming future.

Also the pictorial representation of word cloud shows that words like “long”, “buy” & “dividend” are highly commented in the review.

Word Cloud of Tata Elxsi Reviews from money control

So we have a general idea what investors, traders and experts are anticipating out of Tata Elxsi share in near future.

 

 

Disclaimer: The information on this blog is provided for information purpose only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movement in rates or prices.