GODREJ INDUSTRIES LTD delivered lacklustre performance on Friday. It fell by -0.43% to close at 525.6. On a day when the overall market breadth was 71%, it closed higher than 81% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
GODREJIND showed a strong bullish trend over the last 3 months. During this period GODREJIND surged by +12.13% and saw a maximum drawdown of -6.78%. There was a long signal during this period which returned +4.89%.
GODREJIND has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 1 Jun, 2016 to 20 Jul, 2017. Over the last 3 years and 1 month, GODREJIND outperformed the NIFTY-50 index on 48% days. Which indicates that on days GODREJIND outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
GODREJIND was profitable on 52% days in the last three months. During this time, it delivered on average +0.2% per day. It delivered it's best daily return of +8.04%, during this period, on Tuesday, 13 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 13 Nov, 2018 and went on till 21 Nov, 2018. This bullish trend returned +13.48% to investors.
During the last year GODREJIND had 4 profitable months and 8 loss making months. GODREJIND returned profits in fewer months than NIFTY-50 index. GODREJIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -20.11% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GODREJIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -28.17%. It is interesting to note that both GODREJIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Invest like a bull, sit like a bear and watch like an eagle. (mantra for long term investing)
-- Vijay Kedia
GODREJIND 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 GODREJIND's volatility from 19 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 GODREJIND has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
Investors trading in GODREJIND derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.
NIFTY-50 index has more chance of extreme outcomes than GODREJIND. Therefore, NIFTY-50 must receive a lower allocation than GODREJIND in your portfolio. NIFTY-50 index usually has shorter drawdown period than GODREJIND.
Based on your interest in GODREJIND you may find it interesting to know that TORNTPHARM is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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