There was was extreme pessimism and rightly so in PSU Banking stocks in Feb 2016
Thanks to reckless lending under super guidance of UPA Manmohan and Sonia - SBI trading at lows of CY 2009 pic.twitter.com/Mc2C5HheA3
— Deepak Singh (@smarket) February 22, 2016
And then a small change happened on March 01 2016-
What happened as a result?
SBI made a gap-up on following day on March 02. And now 3 months later - the result of that trade -
Here's the Chart of SBI
SBI has done the mean reversion and now is at 200 dma from extreme pessimism levels.
Lesson: All it needs - small fundamental spark for a beaten down broken stock to make a grand comeback
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers