Insider trading activity affects stock price movements because it gives clues about what company leaders think about their stock. When insiders buy shares, it shows confidence in the company’s future, and prices may go up. If they sell large amounts, it can create doubt and cause the price to fall. Investors and traders follow insider activity closely to make smart investment decisions.

What Is Insider Trading Activity?

Insider trading activity is when people like promoters, directors, or senior employees buy or sell shares of their own company. These insiders know the company’s true performance and future plans. In India, such trades must be reported to SEBI and shared with the public, which helps investors know what insiders are doing with their money.

How Insider Buying Affects Stock Prices?

When insiders buy shares, it sends a positive message to the market. It means they trust the company’s growth and want to invest their own money. This often attracts other investors, which increases demand and pushes the stock price higher. Regular insider buying is seen as a strong signal for future growth.

What Happens When Insiders Sell Shares?

When insiders sell large amounts of shares, it can create fear among investors. People may think the insiders know something negative about the company. This can lead to more selling by the public and a drop in the stock price. But not all selling is bad — sometimes insiders sell for personal needs. So, it’s important to look at the full situation.

Why Insider Activity Moves Stock Prices?

Insiders have access to real-time business performance. If they are buying, it shows confidence, and the stock may rise. If they are selling, it can create panic, and prices may drop. That’s why investors watch insider activity closely. Even small changes in insider trades can create sharp price movements in the market.

Where to Track Insider Trading in India?

In India, insider trading activity is reported to SEBI and published on stock exchange websites like NSE and BSE. You can also find this information on financial news sites. These reports show who bought or sold, how much, and on what date. Keeping an eye on this data helps you stay ahead in the stock market.

How to Use Insider Activity in Trading Strategy?

You can use insider activity as a part of your trading strategy. When you see regular insider buying and the company has good fundamentals, it may be a good time to invest. Combine this with technical and news analysis for stronger decisions. Insider activity is a powerful signal, especially when used with other tools.