INDRAPRASTHA GAS LTD

280.45 +3.29 (+1.17%) Buy

Joy for IGL investors as it outperforms broader market

13 min read

INDRAPRASTHA GAS LTD ranked among the best performers today. It delivered +1.17% to close at 280.45. During the last week it delivered +3.24%.

[Themes containing IGL]

IGL is currently in a bullish trend. Over the last three months 2 bullish signals in IGL have generated a profit of +8.52% for investors.

Trend

IGL has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 1 Jan, 2016 to 4 Dec, 2017. Over the last 3 years and 1 month, IGL outperformed the NIFTY-50 index on 49% days. Which indicates that on days IGL 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 IGL was mostly profitable and delivered on average +0.21% per day. It's best return during this period (of +5.69%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.01%) was on Tuesday, 6 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 10 Jan, 2019 and went on till 18 Jan, 2019. This bullish trend returned +5.23% to investors.

The last 12 months saw IGL's investors making profits in 6 months and incurring losses in 6 months. During the last year, IGL delivered profits in more months than NIFTY-50 index. IGL significantly outperformed NIFTY-50 index in Jul 2018, when it returned +18.95% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. IGL and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both IGL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

IGL 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 IGL's volatility from 1 Nov, 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 IGL has significant negative skewness in it's return distribution. This indicates that IGL is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in IGL derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in IGL you may find it interesting to know that HATSUN is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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