889.35 -5.47 (-0.61%) Buy

Don't buy GULFOILLUB now, it is underperforming the market

14 min read

GULF OIL LUB. IND. LTD. performed worse than the broader market on Friday. It fell by -0.61% to close at 889.35. On a day when the overall market breadth was 71%, it closed higher than 79% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing GULFOILLUB]

GULFOILLUB showed a strong bullish trend over the last 3 months. During this period GULFOILLUB increased by +25.34% and saw a maximum drawdown of -6.48%. There were 2 long signals during this period that returned a cumulative of +10.8% to investors.


GULFOILLUB has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 22 Mar, 2016 to 9 Feb, 2018. Over the last 3 years and 1 month, GULFOILLUB outperformed the NIFTY-50 index on 50% days. Which indicates that on days GULFOILLUB 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 GULFOILLUB was mostly profitable and delivered on average +0.38% per day. It's best return during this period (of +5.5%) was on Tuesday, 6 Nov, 2018. While it's worst loss in the same period (of -3.66%) was on Monday, 10 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 30 Oct, 2018 and went on till 6 Nov, 2018. This bullish trend returned +10.94% to investors.

During the last year GULFOILLUB had 6 profitable months and 6 loss making months. GULFOILLUB returned profits in more months than NIFTY-50 index. GULFOILLUB significantly outperformed NIFTY-50 index in Dec 2018, when it returned +11.36% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. GULFOILLUB had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered +23.45%. It is interesting to note that both GULFOILLUB and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

We make a living by what we get, but we make a life by what we give.
-- Winston Churchill

GULFOILLUB 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 GULFOILLUB's volatility from 4 Dec, 2018 to 16 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 GULFOILLUB 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.

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

Based on your interest in GULFOILLUB you may find it interesting to know that MERCK, LTI and HATSUN have all shown remarkable performance this year and deserve to be on every investor's watchlist.

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