NIFTY-BANK managed to marginally outperform the broader market on Tuesday. It gained +0.59% to close at 27174.7. On a day when the overall market breadth was 71%, it closed higher than 47% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.19%.
NIFTY-BANK is currently in a up trend. The current bullish signal has generated a profit of +3.9% for NIFTY-BANK's investors in the last three months.
NIFTY-BANK was profitable on 55% days in the last three months. During this time, it delivered on average +0.06% per day. It delivered it's best daily return of +3.24%, during this period, on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 30 Nov, 2018 and went on till 6 Dec, 2018. The trend delivered -2.77% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 18 Dec, 2018. This bullish trend delivered +4.06% to investors.
On monthly basis, NIFTY-BANK delivered profits in more months over the last year, than losses. NIFTY-BANK delivered profits in more months than NIFTY-50 index. NIFTY-BANK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -10.48% compared to -6.42% returned by NIFTY-50 index in Sep 2018. NIFTY-BANK and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both NIFTY-BANK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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NIFTY-BANK is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in NIFTY-BANK's volatility from 21 Sep, 2018 to 6 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that NIFTY-BANK has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
Investors trading in NIFTY-BANK derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.
NIFTY-50 index has more chance of extreme outcomes than NIFTY-BANK. Therefore, NIFTY-50 must receive a lower allocation than NIFTY-BANK in your portfolio. NIFTY-50 index usually has shorter drawdown period than NIFTY-BANK.
On a general note (since you are interested in ^NIFTY-BANK), RESPONIND has performed really well this year and deserves to be closely tracked for investment opportunities.
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