2.35 -0.1 (-4.08%) Buy

ADHUNIK investors herd to book profits while the going is good

13 min read

ADHUNIK METALIKS LTD. delivered massive losses today. It delivered -4.08% to close at 2.35. It's recent 5 day performance has been -3.92%, +2.0%, +2.04%, -3.92% and -3.77%.

[Themes containing ADHUNIK]

ADHUNIK is currently in a bullish trend. Over the last three months trading long signals has not been a profitable strategy for ADHUNIK's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -16.07%). It is therefore better to tread with caution in the current uptrend by limiting your allocation to ADHUNIK.


ADHUNIK has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 7 Sep, 2018. Over the last 3 years and 1 month, ADHUNIK underperformed the NIFTY-50 index on 56% days.

During the last three months ADHUNIK was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +9.3%) was on Monday, 7 Jan, 2019. While it's worst loss in the same period (of -6.67%) was on Thursday, 20 Dec, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 31 Dec, 2018 and went on till 9 Jan, 2019. This bullish trend returned +25.65% to investors.

The last 12 months saw ADHUNIK's investors making profits in 5 months and incurring losses in 7 months. ADHUNIK was less consistent in delivering monthly returs than NIFTY-50 index. ADHUNIK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -27.37% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ADHUNIK and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ADHUNIK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Investing is a business, investment is a project and investor is a promoter.
-- Vijay Kedia

ADHUNIK is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in ADHUNIK's volatility from 22 Oct, 2018 to 10 Dec, 2018. 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 ADHUNIK has significant negative skewness in it's return distribution. This indicates that ADHUNIK is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than ADHUNIK. Therefore, NIFTY-50 must receive a lower allocation than ADHUNIK in your portfolio. NIFTY-50 index usually has shorter drawdown period than ADHUNIK.

Based on your interest in ADHUNIK you may find it interesting to know that LTTS is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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