Stop-loss on the minds of INDBANK investors as it underperforms broader market
22 Jan, 201913 min read
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INDBANK MERCH BANK ranked worse than it's peers on Tuesday. It fell by -0.5% to close at 9.95. It is currently trading -72% below it's 52 week high of 35.95.
INDBANK is currently in a bullish trend. Over the last three months 2 bullish signals in INDBANK have generated a profit of +4.96% for investors.
INDBANK has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 25 Jan, 2018 to 1 Oct, 2018. Over the last 3 years and 1 month, INDBANK underperformed the NIFTY-50 index on 54% days.
During the last three months INDBANK delivered losses on 61% days. However, it still managed to end this period in a profit. It's best return during this period (of +8.08%) was on Wednesday, 2 Jan, 2019. While it's worst loss in the same period (of -5.0%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 17 Dec, 2018 and went on till 24 Dec, 2018. This bullish trend returned +4.42% to investors.
During the last year INDBANK had 5 profitable months and 7 loss making months. Profitable number of months of INDBANK and NIFTY-50 index were the same. INDBANK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -33.08% compared to -6.42% returned by NIFTY-50 index in Sep 2018. INDBANK and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both INDBANK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey
INDBANK is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in INDBANK's volatility from 23 Oct, 2018 to 30 Nov, 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 INDBANK has significant negative skewness in it's return distribution. This indicates that INDBANK is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than INDBANK. Therefore, NIFTY-50 must receive a lower allocation than INDBANK in your portfolio. NIFTY-50 index usually has shorter drawdown period than INDBANK.
On a general note (since you are interested in INDBANK), HINDUNILVR is a large cap that deserves to be closely tracked for investment opportunities.
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