DHARANI SUGARS & CHEMICAL showed weakness on Tuesday. It delivered -1.27% to close at 11.65. It is currently trading -61% below it's 52 week high of 30.0.
DHARSUGAR is currently in a bullish trend. Over the last three months trading long signals has not been a profitable strategy for DHARSUGAR's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -14.02%). It is therefore better to tread with caution in the current uptrend by limiting your allocation to DHARSUGAR.
DHARSUGAR has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 7 Jul, 2016 to 27 Jul, 2018. Over the last 3 years and 1 month, DHARSUGAR underperformed the NIFTY-50 index on 58% days.
During the last three months DHARSUGAR was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +4.95%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -4.74%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 4 losing days, which started on 13 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -13.48% of investor capital.
The last 12 months saw DHARSUGAR's investors making profits in 4 months and incurring losses in 8 months. DHARSUGAR was less consistent in delivering monthly returs than NIFTY-50 index. DHARSUGAR was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -36.77% compared to -6.42% returned by NIFTY-50 index in Sep 2018. DHARSUGAR had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered +20.85%. It is interesting to note that both DHARSUGAR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
The difference between succeeding and failing is consistency.
-- Don Connelly
DHARSUGAR is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in DHARSUGAR's volatility from 25 Oct, 2018 to 22 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 DHARSUGAR has significant negative skewness in it's return distribution. This indicates that DHARSUGAR is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than DHARSUGAR. Therefore, NIFTY-50 must receive a lower allocation than DHARSUGAR in your portfolio. NIFTY-50 index usually has shorter drawdown period than DHARSUGAR.
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