Promoters buying stocks of their own company may be a bad thing too.

At first glance, promoter buying feels reassuring. After all, why would someone put more money into their own business unless they believed in it?

But there's a flip side too. What if it's just a way to manipulate the market by sucking out liquidity? What if it's a strategy to boost confidence artificially and then dump those shares when the price rises?

For investors, it’s confusing. On one hand, you want to trust the promoter’s actions. On the other hand, you can't ignore the possibility of hidden motives.

In India, we’ve seen both sides of this story. Some promoters have made fortunes, proving their confidence was justified. Others have left investors in the dark when things went south.

It's important to look deeper. Are the company’s fundamentals strong? Is the promoter achieving hat they forecast or just trying to ramp up the stock price?

Blindly following their lead can be dangerous. Just because a promoter is buying doesn’t mean the stock will rise.

And if they’re selling, it doesn’t always mean the company is doomed. It could be a sign that they are trying to attract strategic investors for growth.

It's like watching someone play chess. You can see their moves, but do you really know their strategy?

Invest wisely. Look beyond the headlines. Seek professional advice if you’re unsure.

Promoters buying or selling might give a signal, but it’s not the full picture.