146.75 -2.22 (-1.51%) Sell

Stop-loss on the minds of ADANIENT investors as it ranked among the worst performers

14 min read

ADANI ENTERPRISES LIMITED was among the worst performers on Friday. It lost -1.51% to close at 146.75. On a day when the overall market breadth was 71%, it closed higher than 41% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing ADANIENT]

ADANIENT is currently in a down trend. Over the last three months 3 bearish signals have generated a profit of +0.22% for investors.


ADANIENT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 14 Feb, 2018. Over the last 3 years and 1 month, ADANIENT outperformed the NIFTY-50 index on 51% days.

During the last three months ADANIENT was mostly loss making and delivered on average -0.2% per day. It's best return during this period (of +7.53%) was on Thursday, 29 Nov, 2018. While it's worst loss in the same period (of -6.38%) was on Monday, 10 Dec, 2018. There was initially a bullish trend during this period which started on 14 Dec, 2018 and went on till 19 Dec, 2018. The bullish trend returned +2.67% to investors. This was followed by a bearish trend that started on 28 Dec, 2018 and ended on 3 Jan, 2019. This bearish trend lost -6.21% of investor capital.

ADANIENT had 3 profitable and 9 loss making months over the last year. During the last year, ADANIENT underperformed NIFTY-50 index on monthly return basis. ADANIENT significantly outperformed NIFTY-50 index in Jul 2018, when it returned +86.77% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ADANIENT had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -60.88%. It is interesting to note that both ADANIENT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey

ADANIENT 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 ADANIENT's volatility from 19 Oct, 2018 to 16 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ADANIENT has significant positive skewness in it's return distribution. This indicates that investors can expect ADANIENT to recover from drawdowns quickly. Which makes ADANIENT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in ADANIENT 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 ADANIENT. Therefore, NIFTY-50 must receive a lower allocation than ADANIENT in your portfolio. ADANIENT usually has shorter drawdown period than the NIFTY-50 index.

On a general note (since you are interested in ADANIENT), if you are evaluating ADANIENT as an investment candidate, then you should read about INDOTECH which has delivered similar performance and can help diversify your portfolio.

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