Volatility Contraction Pattern in Deepak NitrateVCP in Deepak Nitrate was clearly visible with contractions falling down consistently, First being 42% then 11.7% and then finally the tightest one at 5.2%. This is when you take the trade. A contraction below 10% means the stock has now fallen into the strongest hands ( institutional buyers) and that is why i was not worried when it came back down after a day because when you buy a tight contraction there is a high probability of the stock bouncing back as institutes add to their positions.
