Nifty Pharma one the most hated sector in this bull market for a variety of reasons. The number one reason is negative returns since Apr 2015. Till now index had lost a maximum of 42.28% from its peak. Which is very close to the drawdown during the 2008-2009 crisis period. During 2008-2009 economic crisis period Nifty Pharma had made an extreme drawdown of 44% from its peak.
Sometime back during Apr 2016 we have curiosity about pharma sector bottoming out. By that time sector has strong negative sentiment while hitting the panic bottom from there is had made a 2016 high of 12011. We believe that longer timeframe players are still interested in this sector though the presence of intermediate buyers.