DECCAN CEMENTS LIMITED

400.0 +1.4 (+0.35%) Sell

Profit booking on the minds of DECCANCE investors as it marginally outperforms

13 min read

DECCAN CEMENTS LIMITED performed better than the broader market on Friday. It returned +0.35% to close at 400.0. On a day when the overall market breadth was 71%, it closed higher than 73% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing DECCANCE]

DECCANCE is currently in a down trend. The previous short signal in DECCANCE has not been profitable for investors in general. If you are short on DECCANCE at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

DECCANCE has been underperforming the NIFTY-50 index in recent time, after having outperformed till 28 Apr, 2017. Over the last 3 years and 1 month, DECCANCE underperformed the NIFTY-50 index on 51% days.

During the last three months DECCANCE was mostly profitable and delivered on average +0.2% per day. It's best return during this period (of +4.88%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -3.78%) was on Thursday, 6 Dec, 2018. There was initially a bullish trend during this period which started on 13 Dec, 2018 and went on till 27 Dec, 2018. The bullish trend returned +8.06% to investors. This was followed by a bearish trend that started on 1 Jan, 2019 and ended on 3 Jan, 2019. This bearish trend lost -6.35% of investor capital.

On monthly basis, DECCANCE delivered losses in more months over the last year, than profits. DECCANCE delivered profits less regularly than NIFTY-50 index. DECCANCE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -12.4% compared to -6.42% returned by NIFTY-50 index in Sep 2018. DECCANCE had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -15.16%. It is interesting to note that both DECCANCE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Let's not allow the voice of the people to be overwhelmed by the siren song of those who opposed regulation, who demanded that government should stand aside and let finance and business run the show.
-- David Blunkett

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

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

On a general note (since you are interested in DECCANCE), three instruments that deserve special mention are BAJFINANCE, BRITANNIA and NIFTY-GS-15YRPLUS. They have all outperformed the market and must be closely watched for investment opportunities.

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