67.7 -1.71 (-2.52%) Sell

GRAVITA investors take a massive hit

13 min read

GRAVITA INDIA LIMITED is a falling knife that can bleed you if you catch it on Tuesday. It lost -2.52% to close at 67.7. It is currently trading -65% below it's 52 week high of 199.05.

[Themes containing GRAVITA]

Buy-and-Hold investors in GRAVITA experienced a maximum drawdown of -13.09% over the last three months. It lost -2.66% during this down trending period. There were no long signals during this period, where the short signal generated profits of +2.66% for investors.


GRAVITA has been underperforming the NIFTY-50 index in recent time, after having outperformed till 27 Apr, 2018. Over the last 3 years and 1 month, GRAVITA outperformed the NIFTY-50 index on 47% days. Which indicates that on days GRAVITA outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months GRAVITA was mostly loss making and delivered on average -0.02% per day. It's best return during this period (of +4.97%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -4.87%) was on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +12.91% to investors. This was followed by a bearish trend that started on 31 Dec, 2018 and ended on 4 Jan, 2019. This bearish trend lost -3.62% of investor capital.

GRAVITA had 4 profitable and 8 loss making months over the last year. During the last year, GRAVITA underperformed NIFTY-50 index on monthly return basis. GRAVITA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -39.44% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GRAVITA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -28.02%.

To beat the market you'll have to invest serious bucks to dig up information no one else has yet.
-- Merton Miller

GRAVITA is becoming more 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 GRAVITA's volatility from 29 Oct, 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 GRAVITA has significant negative skewness in it's return distribution. This indicates that GRAVITA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in GRAVITA you may find it interesting to know that NIFTY-GS-15YRPLUS, ~MUTHOOTGRP and BRITANNIA have all shown remarkable performance and qualify to be on every investor's watchlist.

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