ATUL AUTO LIMITED performed worse than the broader market on Tuesday. It lost -1.3% to close at 327.35. On a day when the overall market breadth was 70%, it closed higher than 50% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.
ATULAUTO showed a up trend over the last 3 months. During this period ATULAUTO returned +1.5% and saw a maximum drawdown of -21.35%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ATULAUTO till volatility reduces and a clear trend emerges.
ATULAUTO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 3 years and 1 month, ATULAUTO underperformed the NIFTY-50 index on 55% days.
During the last three months ATULAUTO delivered losses on 66% days. However, it still managed to end this period in a profit. It's best return during this period (of +19.99%) was on Tuesday, 1 Jan, 2019. While it's worst loss in the same period (of -3.79%) was on Thursday, 29 Nov, 2018. There was initially a bullish trend during this period which started on 23 Oct, 2018 and went on till 26 Oct, 2018. The bullish trend returned +4.71% to investors. This was followed by a bearish trend that started on 10 Dec, 2018 and ended on 18 Dec, 2018. This bearish trend lost -7.01% of investor capital.
ATULAUTO had 6 profitable and 6 loss making months over the last year. ATULAUTO was profitable in more months than NIFTY-50 index. ATULAUTO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -12.99% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ATULAUTO had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered +8.53%. It is interesting to note that both ATULAUTO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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ATULAUTO 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 ATULAUTO's volatility from 20 Dec, 2018 to 3 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 ATULAUTO has significant negative skewness in it's return distribution. This indicates that ATULAUTO is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than ATULAUTO. Therefore, NIFTY-50 must receive a lower allocation than ATULAUTO in your portfolio. NIFTY-50 index usually has shorter drawdown period than ATULAUTO.
Based on your interest in ATULAUTO you may find it interesting to know that ASTRAZEN, NIITTECH and IGARASHI are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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