THE INDIA CEMENTS LIMITED

85.0 -1.09 (-1.28%) Sell

INDIACEM continues its fall as more investors loose confidence

13 min read

THE INDIA CEMENTS LIMITED delivered lacklustre performance on Friday. It returned -1.28% to close at 85.0. It is currently trading -57% below it's 52 week high of 200.6.

[Themes containing INDIACEM]

INDIACEM is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for INDIACEM's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -5.03%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to INDIACEM.

Trend

INDIACEM has been underperforming the NIFTY-50 index in recent time, after having outperformed till 15 May, 2017. INDIACEM 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, INDIACEM underperformed the NIFTY-50 index on 53% days.

INDIACEM returned losses on 54% days in the last three months. During this time, it delivered on average -0.05% per day. It delivered it's worst daily return of -6.23%, during this period, on Monday, 12 Nov, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +16.66% to investors. This was followed by a bearish trend that started on 7 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -7.67% of investor capital.

On monthly basis, INDIACEM delivered losses in more months over the last year, than profits. INDIACEM delivered profits less regularly than NIFTY-50 index. INDIACEM was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -19.43% compared to -6.42% returned by NIFTY-50 index in Sep 2018. INDIACEM had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -50.55%. It is interesting to note that both INDIACEM and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"I'm a big advocate of financial intelligence.

INDIACEM 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 INDIACEM's volatility from 19 Oct, 2018 to 18 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 INDIACEM has significant positive skewness in it's return distribution. This indicates that investors can expect INDIACEM to recover from drawdowns quickly. Which makes INDIACEM a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in INDIACEM derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in INDIACEM), BATAINDIA is a mid cap that deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter