GRANULES INDIA LIMITED was among the worst performers today. It fell by -2.11% to close at 88.3. It's recent 5 day performance has been -1.2%, +3.4%, +0.68%, -2.66% and -0.5%.
GRANULES is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for GRANULES's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -3.97%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to GRANULES.
GRANULES has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 6 Jun, 2018. Over the last 3 years and 1 month, GRANULES underperformed the NIFTY-50 index on 54% days.
During the last three months GRANULES was mostly loss making and delivered on average -0.04% per day. It's best return during this period (of +8.2%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -4.2%) was on Tuesday, 20 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 11 Dec, 2018 and went on till 19 Dec, 2018. This bullish trend returned +11.24% to investors.
During the last year GRANULES had 6 profitable months and 6 loss making months. GRANULES returned profits in more months than NIFTY-50 index. GRANULES significantly outperformed NIFTY-50 index in Jul 2018, when it returned +32.94% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GRANULES had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +48.74%. It is interesting to note that both GRANULES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"The way to become rich is to put all your eggs in one basket and then watch that basket.
GRANULES 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 GRANULES's volatility from 30 Oct, 2018 to 15 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 GRANULES 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 GRANULES 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 GRANULES. Therefore, NIFTY-50 must receive a lower allocation than GRANULES in your portfolio. NIFTY-50 index usually has shorter drawdown period than GRANULES.
Based on your interest in GRANULES you may find it interesting to know that TCS and TORNTPHARM are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.
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