203.25 -6.3 (-3.1%) Sell

BASML is a falling knife, continues to bleed every investor trying to catch it

13 min read

BANNARI AM SPIN MILL LTD. has destroyed investor wealth today. It lost -3.1% to close at 203.25. It's recent 5 day performance has been -2.76%, -2.53%, +2.72%, +6.82% and -2.23%.

[Themes containing BASML]

BASML showed a down trend over the last 3 months. During this period BASML lost -1.26% and saw a maximum drawdown of -8.32%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in BASML till volatility reduces and a clear trend emerges.


BASML has been underperforming the NIFTY-50 index in recent time, after having outperformed till 25 Oct, 2016. Over the last 3 years and 1 month, BASML underperformed the NIFTY-50 index on 53% days.

BASML was profitable on 52% days in the last three months. During this time, it delivered on average +0.02% per day. It delivered it's best daily return of +7.46%, during this period, on Wednesday, 12 Dec, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +6.94% to investors. This was followed by a bearish trend that started on 16 Jan, 2019 and ended on 18 Jan, 2019. This bearish trend lost -8.39% of investor capital.

BASML had 3 profitable and 9 loss making months over the last year. During the last year, BASML underperformed NIFTY-50 index on monthly return basis. BASML was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -17.49% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BASML 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 -46.09%. It is interesting to note that both BASML and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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BASML is becoming more 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 BASML's volatility from 22 Oct, 2018 to 7 Dec, 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 BASML has significant negative skewness in it's return distribution. This indicates that BASML is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in BASML), ASTRAZEN is a small cap that deserves to be closely tracked for investment opportunities.

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