BATA INDIA LTD

1155.85 +3.61 (+0.31%) Buy

Don't give up on BATAINDIA now, it gave a fairly good return

13 min read

BATA INDIA LTD is looking better than most other alternatives on Friday. It grew by +0.31% to close at 1155.85. It is currently trading +71% above it's 52 week low of 672.9 and is down only 0% from it's 52 week high.

[Themes containing BATAINDIA]

BATAINDIA showed a strong up trend over the last 3 months. During this period BATAINDIA grew by +29.21% and saw a maximum drawdown of -6.79%. There were 2 long signals during this period that returned a cumulative of +16.07% to investors.

Trend

BATAINDIA has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, BATAINDIA outperformed the NIFTY-50 index on 48% days. Which indicates that on days BATAINDIA 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 BATAINDIA was mostly profitable and delivered on average +0.42% per day. It's best return during this period (of +5.49%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -4.16%) was on Monday, 10 Dec, 2018. There was initially a bearish trend during this period which started on 19 Nov, 2018 and went on till 22 Nov, 2018. The trend delivered -4.62% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 19 Dec, 2018. This bullish trend delivered +9.62% to investors.

On monthly basis, BATAINDIA delivered profits in more months over the last year, than losses. BATAINDIA delivered profits in more months than NIFTY-50 index. BATAINDIA significantly outperformed NIFTY-50 index in Aug 2018, when it returned +19.09% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. BATAINDIA had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered +18.36%.

"Beware of little expenses. A small leak will sink a great ship.

BATAINDIA 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 fall in BATAINDIA's volatility from 25 Oct, 2018 to 16 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 BATAINDIA has significant negative skewness in it's return distribution. This indicates that BATAINDIA is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in BATAINDIA derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in BATAINDIA), three instruments that deserve special mention are NIITTECH, HATSUN and LTTS. They have all outperformed the market and must be closely watched for investment opportunities.

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