ALLAHABAD BANK

43.8 -0.64 (-1.46%) Buy

Search for alternative investments is on for ALBK investors as it ranked worse than it's peers

13 min read

ALLAHABAD BANK has destroyed investor wealth on Friday. It returned -1.46% to close at 43.8. It is currently trading -40% below it's 52 week high of 73.1.

[Themes containing ALBK]

ALBK is currently in a up trend. Over the last three months 2 bullish signals in ALBK have generated a profit of +2.76% for investors.

Trend

ALBK has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Jul, 2016. Over the last 3 years and 1 month, ALBK underperformed the NIFTY-50 index on 53% days.

During the last three months ALBK was mostly profitable and delivered on average +0.31% per day. It's best return during this period (of +9.72%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -10.2%) was on Tuesday, 13 Nov, 2018. There was initially a bullish trend during this period which started on 14 Nov, 2018 and went on till 27 Nov, 2018. The bullish trend returned +24.53% to investors. This was followed by a bearish trend that started on 9 Jan, 2019 and ended on 15 Jan, 2019. This bearish trend lost -7.77% of investor capital.

On monthly basis, ALBK delivered losses in more months over the last year, than profits. ALBK delivered profits less regularly than NIFTY-50 index. ALBK significantly outperformed NIFTY-50 index in Oct 2018, when it returned +22.44% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ALBK had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Feb 2018 to May 2018) during which period it delivered -42.95%. It is interesting to note that both ALBK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Here's my gift-giving rule: Respect your current financial situation.
-- Suze Orman

ALBK 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 ALBK's volatility from 30 Oct, 2018 to 18 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 ALBK 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 ALBK 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 ALBK. Therefore, NIFTY-50 must receive a lower allocation than ALBK in your portfolio. NIFTY-50 index usually has shorter drawdown period than ALBK.

On a general note (since you are interested in ALBK), three mid cap instruments that deserve special mention are LTTS, LTI and HATSUN. They have all outperformed the market and must be closely watched for investment opportunities.

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