OSWAL CHEM. & FERT. LTD.

16.4 -0.34 (-2.09%) Sell

Don't invest in BINDALAGRO now, it is a volatile investment

13 min read

OSWAL CHEM. & FERT. LTD. was among the worst performers on Tuesday. It lost -2.09% to close at 16.4. On a day when the overall market breadth was 70%, it closed higher than 27% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing BINDALAGRO]

BINDALAGRO showed a flat trend over the last 3 months. During this period BINDALAGRO returned -0.91% and saw a maximum drawdown of -17.79%. There was a short signal during this period which returned +8.12%.

Trend

BINDALAGRO has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Jan, 2016. Over the last 3 years and 1 month, BINDALAGRO underperformed the NIFTY-50 index on 57% days.

During the last three months BINDALAGRO delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +7.0%) was on Friday, 16 Nov, 2018. While it's worst loss in the same period (of -6.54%) was on Wednesday, 5 Dec, 2018. There was initially a bullish trend during this period which started on 31 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +7.32% to investors. This was followed by a bearish trend that started on 27 Nov, 2018 and ended on 30 Nov, 2018. This bearish trend lost -7.49% of investor capital.

BINDALAGRO had 4 profitable and 8 loss making months over the last year. During the last year, BINDALAGRO underperformed NIFTY-50 index on monthly return basis. BINDALAGRO was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -16.43% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BINDALAGRO and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both BINDALAGRO and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

If you live for having it all, what you have is never enough.
-- Vicki Robin

BINDALAGRO 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 BINDALAGRO's volatility from 23 Oct, 2018 to 21 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 BINDALAGRO has significant negative skewness in it's return distribution. This indicates that BINDALAGRO is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in BINDALAGRO you may find it interesting to know that BAJFINANCE and BRITANNIA have both shown remarkable performance and deserve to be on every investors' watchlist.

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