Looking to invest in GSS? Avoid at the moment as it was among the worst performers
22 Jan, 201913 min read
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GSS INFOTECH LIMITED was among the worst performers today. It fell by -6.39% to close at 114.2. It's recent 5 day performance has been -4.87%, -2.02%, +1.08%, -1.71% and +0.34%.
GSS showed a strong bullish trend over the last 3 months. During this period GSS increased by +22.99% and saw a maximum drawdown of -16.67%. There were 2 long signals during this period that returned a cumulative of +11.29% to investors.
GSS has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 21 Sep, 2017 to 19 Dec, 2018. Over the last 3 years and 1 month, GSS outperformed the NIFTY-50 index on 45% days. Which indicates that on days GSS 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 GSS delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.37%) was on Wednesday, 14 Nov, 2018. While it's worst loss in the same period (of -6.39%) was on Tuesday, 22 Jan, 2019. The longest stort-term trend during this period was 6 profitable days, which started on 6 Nov, 2018 and went on till 14 Nov, 2018. This bullish trend returned +25.82% to investors.
During the last year GSS had 8 profitable months and 4 loss making months. GSS returned profits in more months than NIFTY-50 index. GSS significantly outperformed NIFTY-50 index in Aug 2018, when it returned +44.66% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GSS had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Feb 2018 to May 2018) during which period it delivered +112.56%.
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GSS 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 GSS's volatility from 23 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 GSS has significant negative skewness in it's return distribution. This indicates that GSS is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than GSS. Therefore, NIFTY-50 must receive a lower allocation than GSS in your portfolio. NIFTY-50 index usually has shorter drawdown period than GSS.
On a general note (since you are interested in GSS), two instruments that deserve special mention are HATSUN and RESPONIND. They have significantly outperformed the overall market this year.
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