102.65 -1.67 (-1.63%) Buy

BANKINDIA investors check their stop-losses as it underperforms

13 min read

BANK OF INDIA was among the worst performers on Friday. It lost -1.63% to close at 102.65. It is currently trading -40% below it's 52 week high of 172.45.

[Themes containing BANKINDIA]

BANKINDIA is currently in a up trend. Over the last three months 2 bullish signals in BANKINDIA have generated a profit of +7.29% for investors.


BANKINDIA has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, BANKINDIA underperformed the NIFTY-50 index on 53% days.

BANKINDIA was profitable on 57% days in the last three months. During this time, it delivered on average +0.5% per day. It delivered it's best daily return of +8.79%, during this period, on Monday, 29 Oct, 2018. There was initially a bearish trend during this period which started on 4 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -13.07% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 24 Dec, 2018. This bullish trend delivered +26.81% to investors.

BANKINDIA had 4 profitable and 8 loss making months over the last year. During the last year, BANKINDIA underperformed NIFTY-50 index on monthly return basis. BANKINDIA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -26.08% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BANKINDIA had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -54.04%. It is interesting to note that both BANKINDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.
-- Peter Lynch.

BANKINDIA 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 BANKINDIA's volatility from 23 Oct, 2018 to 30 Oct, 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 BANKINDIA has significant negative skewness in it's return distribution. This indicates that BANKINDIA is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in BANKINDIA 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 BANKINDIA. Therefore, NIFTY-50 must receive a lower allocation than BANKINDIA in your portfolio. NIFTY-50 index usually has shorter drawdown period than BANKINDIA.

On a general note (since you are interested in BANKINDIA), two small cap instruments that deserve special mention are VINATIORGA and RESPONIND. They have significantly outperformed the overall market.

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