In financial market - there is nothing called - This cannot happen. It's a market where anything can happen. People underestimate the importance of AVOID in the stock market. I tweeted this about Pharma in March 2016 yeah 18 months back -
Pharma Sector became SELL in the month of Nov itself. It might underperform for quite some time now. There is real business issue
— Deepak Singh (@smarket) March 30, 2016
I have not recommended any Buy since then. Value Buying in a downtrend is nothing else but Value Trap.
Sun Pharma started breaking down when it way trading near 800 and I did point to this way back then
This is what happens when floor disappears for the stock. Sun Pharma in two days has gone from 800 to 730 pic.twitter.com/807XRMBWn4
— Deepak Singh (@smarket) November 10, 2015
Here's how Sun Pharma stock looks now
The major breakdown happened at 720 and see what has happened.
It's important to recognize risk: again warning given long back
Indian Pharma stocks have become very risky now...and most of them have started to underperform now by wide margin
— Deepak Singh (@smarket) March 15, 2016
Here's Lupin Chart and see how it has broken down
I did warn against bottom fishing in the stock when it broke down.
Remember in financial market - the most risky behavior is playing against the trend.
Pharma Sector became Avoid in November. It continues to be Avoid.
— Deepak Singh (@smarket) March 29, 2016
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