ADANI POWER LTD performed worse than the broader market today. It returned -0.2% to close at 50.75. It's recent 5 day performance has been +2.11%, -0.9%, +1.41%, -1.39% and -0.5%.
ADANIPOWER showed a strong up trend over the last 3 months. During this period ADANIPOWER grew by +51.95% and saw a maximum drawdown of -15.38%. There were 2 long signals during this period that returned a cumulative of +29.92% to investors.
ADANIPOWER has been underperforming the NIFTY-50 index in recent time, after having outperformed till 3 Dec, 2018. Over the last 3 years and 1 month, ADANIPOWER outperformed the NIFTY-50 index on 47% days. Which indicates that on days ADANIPOWER outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months ADANIPOWER delivered losses on 51% days. However, it still managed to end this period in a profit. It's best return during this period (of +18.99%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -6.85%) was on Monday, 10 Dec, 2018. There was initially a bearish trend during this period which started on 15 Nov, 2018 and went on till 21 Nov, 2018. The trend delivered -6.02% losses to investors. This was followed by a bullish trend that started on 22 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +22.65% to investors.
On monthly basis, ADANIPOWER delivered losses in more months over the last year, than profits. ADANIPOWER delivered profits less regularly than NIFTY-50 index. ADANIPOWER significantly outperformed NIFTY-50 index in Jul 2018, when it returned +102.91% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ADANIPOWER and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ADANIPOWER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.
-- William A. Ward
ADANIPOWER 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 ADANIPOWER's volatility from 29 Oct, 2018 to 14 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 ADANIPOWER 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 ADANIPOWER 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 ADANIPOWER. Therefore, NIFTY-50 must receive a lower allocation than ADANIPOWER in your portfolio. NIFTY-50 index usually has shorter drawdown period than ADANIPOWER.
On a general note (since you are interested in ADANIPOWER), three large cap instruments that deserve special mention are INFY, TCS and BAJFINANCE. They have all outperformed the market and must be closely watched for investment opportunities.
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