365.15 -8.93 (-2.44%) Sell

Prayers for DICIND investors as it was among the worst performers

13 min read

DIC INDIA LIMITED significantly underperformed on Wednesday. It delivered -2.44% to close at 365.15. It is currently trading -38% below it's 52 week high of 589.9.

[Themes containing DICIND]

DICIND is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for DICIND's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -0.31%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to DICIND.


DICIND has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Feb, 2016 to 30 Jul, 2018. Over the last 3 years and 1 month, DICIND underperformed the NIFTY-50 index on 52% days.

During the last three months DICIND delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +10.62%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -8.75%) was on Thursday, 25 Oct, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +3.89%) started on 21 Nov, 2018 and went on till 27 Nov, 2018 while the bearish trend (which returned -7.5%) started on 12 Nov, 2018 and went on till 15 Nov, 2018.

The last 12 months saw DICIND's investors making profits in 3 months and incurring losses in 9 months. DICIND was less consistent in delivering monthly returs than NIFTY-50 index. DICIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -10.4% compared to -6.42% returned by NIFTY-50 index in Sep 2018. DICIND 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 -30.16%. It is interesting to note that both DICIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Persist - don't take no for an answer. If you're happy to sit at your desk and not take any risk, you'll be sitting at your desk for the next 20 years.
-- David Rubenstein

DICIND 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 DICIND's volatility from 25 Oct, 2018 to 18 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 DICIND has significant negative skewness in it's return distribution. This indicates that DICIND is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in DICIND you may find it interesting to know that RESPONIND has shown remarkable performance this year and deserves to be on every investors' watchlist.

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