I think we make a lot out of promoter selling… The thing to know here is that the promoter running the business is not selling his shares. Its being sold by his cousin who is saddled with his stake and is not running the business. He may have his reasons for selling, which we might not be aware of.
Stake sale by non managing promoters and even institutions sometimes is not such a bad thing. We have had some recent and not so recent experiences with big sales in stakes. In the past, there were two tranches of big sale by institutions in Laurus when price remained under pressure for a few days post this sale and then resumed its uptrend in response to earnings. Recent example was in case of HBL Power where Banyan tree which used to hold nearly 10% stake kept selling and as recently as a few days ago, there was clear cut supply at price of 80, before the order news came about. Once the positive news came about, stock went up swiftly and now seems to have settled at a higher level of 90 plus.
Usha martin chart has an interesting pattern currently. Its stock price broke out above 140 on 25 July with huge volumes thus breaking out of a cup and handle pattern. (neckline of the pattern is marked in blue dotted horizontal line. ) Once that happened, stock price went up to 157-158 and corrected, and is now doing a retest of the breakout zone by consolidating between 132-142, and a brief attempt was made a couple of days ago but stock again corrected from 150 levels to again hover in and around 140.
In fact today it has formed an interesting candlestick pattern called homing pigeon candlestick. It consists of two candlesticks wherein first candle is a dark bearish candlestick where stock price opens higher and by end of trading, closes well below that near the lows of the day. On the second day (today) stock price opens higher and suffers selling pressure and closes lower than the open, but higher than previous day’s close. The body (area between open and close) of second candle is completely within the body of first candle. Usually this is considered as a trend reversing candle stick (in this case, reversing from a short term correction, to possibly go up in next few trading sessions . Current example is not an example of classic homing pigeon, which usually occurs at fag end of a bearish trend. ) Proof of the pudding will remain in the eating. 
Next few days will tell us how things go from here. (PS… just noticed that we have another example of a classic homing pigeon candlestick on this very chart on 17 June. On 16, there was a big bearish candlestick at the fag end of a major correction. On next day we have a homing pigeon candlestick pattern which had a bottom perched exactly on 200 dema at 99-100, shown in green line. After that there was a very good rally from 100 to swing highs of 157.
If the cup and handle pattern plays out, target of pattern could be around 180.
disc: invested since a long time as disclosed before.
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