Let us look at some numbers for few select stocks.
First the background:
People become exuberant when market makes higher and higher levels. At present markets may be in a depressed mood but NIFTY had made the all time high of 12430.50 less than 4 months ago on January 20, 2020.
Looks like a long time but it is not.
The same guys who look down and dejected on TV channels now and talk of 8500 and 8000 levels used to make noises about NIFTY likely to touch 14000- 15000. I hope you remember those days.
The point I wish to make is that the all time highs do not matter if the stocks have become really weak in market perception. The reason may be anything. But it is some rare stock which recovers from a downward spiral.
Now the numbers I wanted you to look at:
NIFTY had made the then all time high of 11171.55 on January 29, 2018.
NIFTY made the latest all time high on January 20, 2020.
I had written a post on Quora on June 03, 2018 about the weakness in these stocks. Therefore price on June 01, 2018 is also considered.
Even when NIFTY was at at all time high, TATAMOTORS was trading more than 50% lower than 2 years earlier.
Story was worse for VEDANTA, IDEA and VAKRANGEE.
JETAIRWAYS trading was stopped from July 2019.
In addition to these, we have RELCAPITAL, RELINFRA, RCOM, RPOWER, PCJEWELLERS, IBULHSGFIN, YESBANK, PNB, CANBK and many many more.
Let us keep our eyes open and spot such weakness ahead of the time.
I am not talking of the fall due to coronavirus crisis.
Let us compare with the the time when the NIFTY was at all time high.
That picture too is pretty bad i.e. not pretty at all.
Do not fall for the talk on TV. That is for entertainment. Not for making profit.
Read the post on Quora here:
Enjoy the weekend.
Be back here again tomorrow.
Stay at home, stay safe, stay healthy.