8.95 0.0 (0.0%) Sell

Are you evaluating investing in EDL? Consider as it is looking better than most other alternatives

13 min read

EMPEE DISTI. LTD. is looking better than most other alternatives on Friday. It lost 0.0% to close at 8.95. It is currently trading -87% below it's 52 week high of 70.1.

[Themes containing EDL]

EDL showed a strong down trend over the last 3 months. During this period EDL lost -48.56% and saw a maximum drawdown of -53.16%. There was a short signal during this period which returned +42.07%.


EDL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 4 Jan, 2016. Over the last 3 years and 1 month, EDL underperformed the NIFTY-50 index on 57% days.

During the last three months EDL was mostly loss making and delivered on average -1.03% per day. It's best return during this period (of +4.71%) was on Thursday, 22 Nov, 2018. While it's worst loss in the same period (of -5.0%) was on Monday, 5 Nov, 2018. There was initially a bearish trend during this period which started on 9 Nov, 2018 and went on till 20 Nov, 2018. The trend delivered -37.37% losses to investors. This was followed by a bullish trend that started on 14 Dec, 2018 and ended on 19 Dec, 2018. This bullish trend delivered +6.22% to investors.

EDL had 3 profitable and 9 loss making months over the last year. During the last year, EDL underperformed NIFTY-50 index on monthly return basis. EDL significantly outperformed NIFTY-50 index in Aug 2018, when it returned +44.41% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. EDL and NIFTY-50 index, both had periods of 3 consecutive profitable months. It is interesting to note that both EDL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Success is walking from failure to failure with no loss of enthusiasm.
-- Winston Churchill

EDL 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 EDL's volatility from 22 Oct, 2018 to 14 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 EDL has positive skewness in it's return distribution. This indicates that investors can expect EDL to make attempts to recover from drawdowns quickly. Which makes EDL a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in EDL), if you are an investor in SRIPIPES, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.

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