FDC LIMITED

171.75 -0.2 (-0.12%) Sell

FDC continues its fall as more investors loose confidence

13 min read

FDC LIMITED trailed the broader market today. It lost -0.12% to close at 171.75. It's recent 5 day performance has been 0.0%, +0.06%, +0.12%, -0.61% and -0.8%.

[Themes containing FDC]

FDC showed a strong down trend over the last 3 months. During this period FDC lost -18.83% and saw a maximum drawdown of -18.88%. There was a short signal during this period which returned +18.83%.

Trend

FDC has been underperforming the NIFTY-50 index in recent time, after having outperformed till 7 Mar, 2018. FDC is currently at it's worst performance to the NIFTY-50 index and therefore does not make a good investment candidate. Over the last 3 years and 1 month, FDC underperformed the NIFTY-50 index on 55% days.

FDC returned losses on 56% days in the last three months. During this time, it delivered on average -0.32% per day. It delivered it's worst daily return of -3.59%, during this period, on Friday, 7 Dec, 2018. There was initially a bullish trend during this period which started on 7 Nov, 2018 and went on till 13 Nov, 2018. The bullish trend returned +1.64% to investors. This was followed by a bearish trend that started on 19 Dec, 2018 and ended on 26 Dec, 2018. This bearish trend lost -6.07% of investor capital.

FDC had 3 profitable and 9 loss making months over the last year. During the last year, FDC underperformed NIFTY-50 index on monthly return basis. FDC significantly outperformed NIFTY-50 index in Feb 2018, when it returned +22.89% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. FDC had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -32.16%. It is interesting to note that both FDC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Wealth is the ability to fully experience life.
-- Henry David Thoreau

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

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

On a general note (since you are interested in FDC), two instruments that deserve special mention are BAJFINANCE and NIFTY-GS-15YRPLUS. They have significantly outperformed the overall market.

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