Terasoft, observe how punter play with retail Minds

Terasoft which grew by 15.8% on Friday supported by 3Million volume, now look at 16th Jul 21 where again 3million of volume came and stock went up and after that it kept going down. I have highlighted these 2 dates 16th Jul 21 & 9th sept 22 along with RSI resistance of same date. As part of technical analysis we are taught that if any breakout happens supported by volume then probability of script going up is high. These are traps to give exit to large players and I wanted to help anyone who was interested in buying this stock. When I looked more about this company on internet then find out below things.
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of -14.0% over past five years.
- Company has a low return on equity of 1.88% for last 3 years.
- Contingent liabilities of Rs.79.8 Cr.
- Earnings include an other income of Rs.3.25 Cr.
- Company has high debtors of 527 days.
- Company's cost of borrowing seems high

My suggestion would be to look for fundamentals also along with technical/charts specially for Small cap/cash stocks coz its easier to manipulate them than large/mid cap stocks.

Comment:

Down only 26% after my update and if close below 45.7 then gone. Hope i was able to save someone from the trap