24.25 -0.15 (-0.61%) Buy

GARDENSILK investors re-evaluating their investment strategy

13 min read

GARDEN SILK MILLS LTD underperformed broader market on Tuesday. It fell by -0.61% to close at 24.25. On a day when the overall market breadth was 70%, it closed higher than 29% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing GARDENSILK]

GARDENSILK is currently in a bullish trend. Over the last three months 2 bullish signals in GARDENSILK have generated a profit of +7.99% for investors.


GARDENSILK has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 8 Jan, 2018 to 1 Oct, 2018. Over the last 3 years and 1 month, GARDENSILK underperformed the NIFTY-50 index on 55% days.

During the last three months GARDENSILK was mostly profitable and delivered on average +0.32% per day. It's best return during this period (of +14.69%) was on Tuesday, 18 Dec, 2018. While it's worst loss in the same period (of -5.7%) was on Thursday, 3 Jan, 2019. The longest stort-term trend during this period was 7 profitable days, which started on 10 Dec, 2018 and went on till 18 Dec, 2018. This bullish trend returned +26.47% to investors.

During the last year GARDENSILK had 6 profitable months and 6 loss making months. GARDENSILK returned profits in more months than NIFTY-50 index. GARDENSILK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -25.74% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GARDENSILK and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both GARDENSILK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

GARDENSILK 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 surge in GARDENSILK's volatility from 12 Nov, 2018 to 18 Dec, 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 GARDENSILK has significant negative skewness in it's return distribution. This indicates that GARDENSILK is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in GARDENSILK), two large cap instruments that deserve special mention are BAJFINANCE and BRITANNIA. They have significantly outperformed the overall market.

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