Search for alternative investments is on for HIKAL investors as it shows weakness
22 Jan, 201913 min read
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HIKAL LIMITED was among the worst performers on Tuesday. It fell by -1.99% to close at 152.95. It is currently trading -22% below it's 52 week high of 198.3.
HIKAL is currently in a bullish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +6.25%) for HIKAL's investors than trading long signals.
HIKAL has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 31 Mar, 2016 to 10 Jan, 2017. Over the last 3 years and 1 month, HIKAL outperformed the NIFTY-50 index on 43% days. Which indicates that on days HIKAL 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 HIKAL delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.62%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -3.94%) was on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 15 Jan, 2019 and ended on 22 Jan, 2019. This bearish trend lost -5.93% of investor capital.
During the last year HIKAL had 4 profitable months and 8 loss making months. HIKAL returned profits in fewer months than NIFTY-50 index. HIKAL significantly outperformed NIFTY-50 index in Apr 2018, when it returned +23.51% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. HIKAL 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 -14.44%. It is interesting to note that both HIKAL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.
-- Robert G. Allen
HIKAL 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 HIKAL's volatility from 1 Nov, 2018 to 3 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 HIKAL has significant negative skewness in it's return distribution. This indicates that HIKAL is very risky for short-term investment and can significantly underperform for long durations.
HIKAL has more chance of extreme outcomes than the NIFTY-50 index. Therefore, HIKAL must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than HIKAL.
On a general note (since you are interested in HIKAL), three instruments that deserve special mention are HATSUN, RESPONIND and MERCK. They have all outperformed the market and must be closely watched for investment opportunities.
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