868.4 -4.72 (-0.54%) Sell

BALKRISIND continues its fall as more investors loose confidence

13 min read

BALKRISIND showed weakness today. On a longer term basis, investors in BALKRISHNA IND. LTD made +0.11% per day. Friday's performance of -0.54% was a underperformance compared to it's daily average.

[Themes containing BALKRISIND]

BALKRISIND showed a strong bearish trend over the last 3 months. During this period BALKRISIND delivered -16.29% and saw a maximum drawdown of -23.44%. There were 2 short signals during this period that returned a cumulative of +2.43% to investors.


BALKRISIND has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 22 Feb, 2016 to 29 Aug, 2018. Over the last 3 years and 1 month, BALKRISIND outperformed the NIFTY-50 index on 48% days. Which indicates that on days BALKRISIND 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 BALKRISIND was mostly loss making and delivered on average -0.26% per day. It's best return during this period (of +4.63%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -11.71%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 24 Oct, 2018 and went on till 1 Nov, 2018. This bullish trend returned +12.56% to investors.

The last 12 months saw BALKRISIND's investors making profits in 4 months and incurring losses in 8 months. BALKRISIND was less consistent in delivering monthly returs than NIFTY-50 index. BALKRISIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -25.15% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BALKRISIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered -21.96%. It is interesting to note that both BALKRISIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

BALKRISIND 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 BALKRISIND's volatility from 6 Nov, 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 BALKRISIND has significant negative skewness in it's return distribution. This indicates that BALKRISIND is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in BALKRISIND derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in BALKRISIND you may find it interesting to know that ~MKTCAP201TO250 has shown remarkable performance and deserves to be on every investors' watchlist.

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