325.15 +0.3 (+0.09%) Buy

HEXAWARE continues it's uptrend, although on a weaker note

13 min read

HEXAWARE ranked better than it's peers today. On a longer term basis, investors in HEXAWARE TECHNOLOGIES LTD made +0.12% per day. Friday's performance of +0.09% was a outperformance compared to it's daily average.

[Themes containing HEXAWARE]

HEXAWARE showed a strong bearish trend over the last 3 months. During this period HEXAWARE delivered -13.64% and saw a maximum drawdown of -19.31%. There was a short signal during this period which returned +13.12%.


HEXAWARE has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 18 Oct, 2016 to 9 Jul, 2018. Over the last 3 years and 1 month, HEXAWARE outperformed the NIFTY-50 index on 49% days. Which indicates that on days HEXAWARE 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 HEXAWARE was mostly loss making and delivered on average -0.21% per day. It's best return during this period (of +4.58%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -5.54%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 22 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -18.86% of investor capital.

The last 12 months saw HEXAWARE's investors making profits in 5 months and incurring losses in 7 months. During the last year, HEXAWARE and NIFTY-50 index had the same number of profitable months. HEXAWARE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -22.41% compared to -6.42% returned by NIFTY-50 index in Sep 2018. HEXAWARE had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered -32.57%. It is interesting to note that both HEXAWARE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Security depends not so much upon how much you have, as upon how much you can do without.
-- Joseph Wood Krutch

HEXAWARE 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 HEXAWARE's volatility from 25 Oct, 2018 to 9 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 HEXAWARE has significant positive skewness in it's return distribution. This indicates that investors can expect HEXAWARE to recover from drawdowns quickly. Which makes HEXAWARE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in HEXAWARE 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 HEXAWARE. Therefore, NIFTY-50 must receive a lower allocation than HEXAWARE in your portfolio. NIFTY-50 index usually has shorter drawdown period than HEXAWARE.

Based on your interest in HEXAWARE you may find it interesting to know that INFY, BAJFINANCE and TCS are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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