BSE Healthcare
The question is asked often... Have Pharma stocks bottomed out? Here is a quick take using the BSE Healthcare index. The fall fits a nice falling channel and we did bottom at the lower end of the channel, after what has so far been a complex 3 wave decline. Marked as W-X-Y, what is left open is whether the next move up is the start of a new bull phase for Pharma stocks or just an X wave. Ideally long term
corrections will go on till point Z and therefore I cannot conclude that the worst is over even after 2 years in the channel. The best approach is to keep expectations for an X wave to the upper end of the channel and remain open to wave Z down in one more decline when it happens. After that it might be worth considering a longer term bottom for the Sector.
