GUJARAT SIDHEE CEM. LTD.

23.5 -0.54 (-2.29%) Sell

GSCLCEMENT is a falling knife, continues to bleed every investor trying to catch it

13 min read

GUJARAT SIDHEE CEM. LTD. delivered massive losses on Tuesday. It lost -2.29% to close at 23.5. On a day when the overall market breadth was 70%, it closed higher than 42% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing GSCLCEMENT]

GSCLCEMENT showed a flat trend over the last 3 months. During this period GSCLCEMENT returned +0.64% and saw a maximum drawdown of -15.85%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in GSCLCEMENT till volatility reduces and a clear trend emerges.

Trend

GSCLCEMENT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 8 Apr, 2016. Over the last 3 years and 1 month, GSCLCEMENT underperformed the NIFTY-50 index on 54% days.

GSCLCEMENT returned losses on 56% days in the last three months. During this time, it delivered on average +0.03% per day. It delivered it's best daily return of +5.73%, during this period, on Wednesday, 19 Dec, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +8.89% to investors. This was followed by a bearish trend that started on 29 Nov, 2018 and ended on 4 Dec, 2018. This bearish trend lost -2.83% of investor capital.

GSCLCEMENT had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of GSCLCEMENT and NIFTY-50 index were the same. GSCLCEMENT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -16.39% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GSCLCEMENT and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both GSCLCEMENT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Many of life's failures are people who did not realize how close they were to success when they gave up.
-- Thomas Edison

GSCLCEMENT 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 surge in GSCLCEMENT's volatility from 22 Nov, 2018 to 20 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 GSCLCEMENT has significant negative skewness in it's return distribution. This indicates that GSCLCEMENT is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in GSCLCEMENT you may find it interesting to know that IGARASHI, RESPONIND and ASTRAZEN are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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