Hitesh portfolio

Hello @hitesh2710 Sir,

I am a recent follower of your posts and have been trying to learn from your insights. I am reletavily new in markets (since 2019 only) and normally invest based on the fundamentals of the companies. I have been trying to increase my knowledge of technicals since last few months and your posts have been of immense value here.

I believe that technicals normally follow the fundamentals of a business. So if the company is performing well on business side then technically it will stay strong and vice versa. I recently came across a business where business is still performing well but the technicals have suddenly gotten worse.

The name of the company is SDBL (Som distilleries), the business is growing YoY at 50%+ but then they had an Income tax raid in November but nothing came out of it (mgmt explained in multiple interviews that nothing suspicious is found). Since then the stock is down 30% and is now trading at 200dma with RSI at 40. Despite company coming with strong set of numbers for Q3 and guiding for double revenue in next 2 years last week, the stock is not moving.

Can you please help me understand how should I look into it? Can it be only because of the Income tax raid that the market is waiting for more clarity to emerge but I see other businesses where market brushed aside similar issues with other companies relatively fast (e.g Polycab).