An analysis of the price-tr­ading volume pattern beh­ind DB Realty stock's seco­nd consecutive day price shoot-up by about 19 per cent reveals the day's price gain happened in the first 10-15 minutes of trading on volumes that were moderate.

The stock which opened at Rs 85 on NSE, against its previous close of Rs 99.90, jumped dramatically by 17.62 per cent to Rs 117.50 within 15 minutes of opening trade, against a total trading volume of 36,29,063 shares, collectively, on NSE and BSE, constituting nearly 29 per cent of the day’s trade.

The balance 71 per cent of the day's traded resulted in a further increase of only 1.14 per cent indicating that the sharp rise in early trades were backed by relatively moderate trading volume. No bulk deals were reported in the company's reported on the two exchanges.

On Tuesday, CBI had arrested Asif Balwa and Rajiv Agarwal, the two senior officials of the company, to investigate about Kusegaon Realty, in which they are directors and shareholders.

At end of trading session on Wednesday, there were only outstanding sale orders of a total of 24,896 shares on the two exchanges and no outstanding purchase orders signifying lack of buying interest.

The scrip settled the day at Rs 118.65 on NSE, up 18.76 per cent from the previous close. The scrip has jumped 38.33 per cent on NSE in the past two sessions. Average volume for the past two sessions has also remained abnormally high at 1,37,78,000 shares, which is over nine times the average daily volume of 14,96,968 shares in calendar year 2011.

The average daily volume of the scrip on both exchanges in 2010 since it was debuted on February 24, was 7,22,060 shares. In the current calendar year, the share price of the company peaked at Rs 205.50 on NSE on January 4, while the scrip saw this year’s closing low of Rs 83.55 on Monday this week. In 2010, the scrip had risen to Rs 468.60 on March 9 and saw a steep fall after the second half of October. Later on December 20, 2010, the scrip declined to closing- low of Rs 185.40 for 2010.

amitmudgill

@mydigitalfc.com