AMTEK AUTO LTD.

2.95 -0.14 (-4.84%) Sell

AMTEKAUTO investors looking to preserve capital

13 min read

AMTEK AUTO LTD. significantly underperformed on Monday. It returned -4.84% to close at 2.95. On a day when the overall market breadth was 71%, it closed higher than 5% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing AMTEKAUTO]

AMTEKAUTO is currently in a down trend. The current bearish signal has generated a profit of +38.54% for investors in the last three months.

Trend

AMTEKAUTO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 13 days, AMTEKAUTO underperformed the NIFTY-50 index on 58% days.

During the last three months AMTEKAUTO was mostly loss making and delivered on average -3.66% per day. It's best return during this period (of +1.43%) was on Monday, 17 Dec, 2018. While it's worst loss in the same period (of -5.0%) was on Monday, 26 Nov, 2018. There was initially a bullish trend during this period which started on 22 Oct, 2018 and went on till 22 Oct, 2018. The bullish trend returned 0.0% to investors. This was followed by a bearish trend that started on 29 Oct, 2018 and ended on 10 Dec, 2018. This bearish trend lost -30.89% of investor capital.

On monthly basis, AMTEKAUTO delivered losses in more months over the last year, than profits. AMTEKAUTO delivered profits less regularly than NIFTY-50 index. AMTEKAUTO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -16.9% compared to -3.61% returned by NIFTY-50 index in Mar 2018. AMTEKAUTO and NIFTY-50 index, both had periods of 6 consecutive profitable months.

The difference between succeeding and failing is consistency.
-- Don Connelly

AMTEKAUTO 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 surge in AMTEKAUTO's volatility from 22 Oct, 2018 to 14 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 29 Oct, 2018 to 7 Jan, 2019.

Advanced/professional short-term investors should note that AMTEKAUTO has positive skewness in it's return distribution. This indicates that investors can expect AMTEKAUTO to make attempts to recover from drawdowns quickly. Which makes AMTEKAUTO a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

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

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