Today i'm here to give you a idea about what actually operators do and how they manipulate prices of the securities and make fradulent gains




Who are the operators?

It may be stock brokers,Company insiders,Retail Traders in collusion with brokerages and lot more people can do it.
Here we would like to explain the manipulation with an example of Manipulated stock and is still being manipulated now too..
The Name of the security is pochiraju industries ltd.
The operator play started with Sale of shares on 21.05.2014 when the price was meager Rs.9 as given in the below images

From there on the traders who are colluted with the operators keep on trading Intraday for inflating the price and volumes volumes You can see the volume increase from May 2014-August 2014
In this case the traders as seen from the images are Shraddha Invt , Gajanan Enterprises,Vijit Shares etc.,
and also these people post on various forums,send bulk messages to create buying interest
In this case it was through forums like Moneycontrol Message Board etc., they created buying interest quoting good fundamentals and future prospects as the reason for jump in price.


Here an another issue that comes into picture is technical analysis when the charts are looking good with a rise in price and volume no one would want to lose that opportunity unless they know that it is a junk company
With the contribution of all these factors the price has been manipulated from Rs.9 to Rs.80 an increase of 888%
Now Operators started offloading (selling) their shares at these high prices making huge gains due to selling pressure the price has now come to Rs.22

Who are the losers ?

You retail investors ,sad thing is that some operators involved are penalised but the manipulation is continuing.
Do you know what the cycle again started now at the price of 21 on 19.06.2015
Observe what will happen in the days to come..
Note:This is not an Illustration on how to make gains when operators have entered the stocks ,this is a explanation for cautioning you about operator plays going on retail investors being trapped and making heavy losses
And also this is my understanding of how the manipulation has taken place or i say it is a 'manipulation' you may not think so this is purely my opinion and I take no responsibility for your take on my opinion