Current Market Price (CMP): 1610.80

Six month ago Price: 550 (52 week low)

Few days back Price: 2359.05 (52 week high).

Total gain: 400%

Well it’s not magic or say companies doesn’t got big orders, it’s just a tussle between bull & bear that bring this share at it’s historic high. Before this event let me tell you the share pattern of AKRUTI where 90% share owned by promoters,6% from corporate bodies & 4% held by retail investor

This tussle start few months back, Akruti’s promoters had raised money by pledging shares with a couple of non-banking finance companies. Initially, it appeared that the promoters were finding it difficult to repay the loans. This encouraged bear traders to go heavily short on the stock from January, hammering the price all the way down to around Rs 550. To the bears’ hard luck, the promoters are said to have repaid the loans and redeemed the shares.

Suddenly, the bears found themselves trapped, as they realized they would not be able to square off their positions without pushing prices up. They decided to carry forward their short positions, hoping that the price would cool down because of the bearish outlook on the real estate sector in general. Meanwhile, the bulls had cornered the shares, and started building up long positions in the futures. 

As a result of which It soared 11% to close at Rs 2,227.50 on Thursday, amid heavy volumes, as the bulls appeared to be moving for the kill. According to market talk, some players who short-sold Akruti March futures have been trapped by the upswing in prices. They have been recklessly trying to cover up their positions over the past few sessions, sending prices of the stock and its futures higher. 

On Thursday, the NSE said it would exclude the Akruti stock from the F&O segment after the expiry of the March series. The exchange did not specify any reason for its action. NSE has also placed the stock in the trade-for-trade segment with effect from March 27. This means that no trade in the stock from that day can be squared off; every trade will have to compulsorily result in delivery. Brokers say the stock could see volatility on Friday too. 

Some of the smaller investors sell Akruti on Friday, worried about regulatory actions due to which share price went down by 26% on Friday. But it is very likely that the selling will be absorbed by the bull cartel, as it would want to keep the price firm till expiry. The bear group is said to consist mainly of a Mumbai-based trader and a couple of foreign institutional players.

The bull camp is said to be a led by a Mumbai-based operator who holds a sizeable stake in the company through his investment firm. Brokers say this operator is being backed by powerful players, without whose support he would not have been able to sustain the price. Of the company’s equity base of 6.67 crore shares, the promoters own 90%, nearly 6% is held by corporate bodies, and the rest by the public. The low-floating stock is said to have made it easier for the bulls to trap the short sellers.

So that’s how bull played a game & trapped the bear or say killed the bear & bear has no way other than to booked huge loss in Akruti Nirman. Now the future of Akruti is very bad. As per our estimates it will loose another 50-60% of it’s total value provided bull will show new artificial action.