THE HI-TECH GEARS LIMITED

314.15 -6.22 (-1.98%) Sell

Don't buy HITECHGEAR now, it is a risky investment

13 min read

THE HI-TECH GEARS LIMITED has destroyed investor wealth today. It lost -1.98% to close at 314.15. It's recent 5 day performance has been -0.37%, +0.42%, -2.56%, +0.91% and -1.15%.

[Themes containing HITECHGEAR]

HITECHGEAR showed a strong down trend over the last 3 months. During this period HITECHGEAR lost -12.55% and saw a maximum drawdown of -16.92%. There were 2 short signals during this period that returned a cumulative of +8.19% to investors.

Trend

HITECHGEAR has been underperforming the NIFTY-50 index in recent time, after having outperformed till 20 Dec, 2017. HITECHGEAR is currently at it's worst performance to the NIFTY-50 index and therefore does not make a good investment candidate. Over the last 3 years and 1 month, HITECHGEAR underperformed the NIFTY-50 index on 55% days.

HITECHGEAR returned losses on 54% days in the last three months. During this time, it delivered on average -0.2% per day. It delivered it's best daily return of +4.08%, during this period, on Wednesday, 12 Dec, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +6.37% to investors. This was followed by a bearish trend that started on 14 Nov, 2018 and ended on 16 Nov, 2018. This bearish trend lost -0.97% of investor capital.

HITECHGEAR had 3 profitable and 9 loss making months over the last year. During the last year, HITECHGEAR underperformed NIFTY-50 index on monthly return basis. HITECHGEAR significantly outperformed NIFTY-50 index in Apr 2018, when it returned +18.25% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. HITECHGEAR had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -29.41%. It is interesting to note that both HITECHGEAR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

It's good to have money and the things that money can buy, but It's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy.
-- George Lorimer

HITECHGEAR 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 fall in HITECHGEAR's volatility from 22 Oct, 2018 to 17 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 HITECHGEAR has significant negative skewness in it's return distribution. This indicates that HITECHGEAR is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in HITECHGEAR), three mid cap instruments that deserve special mention are HATSUN, BATAINDIA and CUB. They have all outperformed the market and must be closely watched for investment opportunities.

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