34.25 +0.05 (+0.15%) Buy

INDORAMA continues it's uptrend, although on a weaker note

13 min read

INDO RAMA SYNTHETICS LTD managed to outperform the broader market today. It surged by +0.15% to close at 34.25. It's recent 5 day performance has been -1.01%, -1.29%, -4.89%, -4.91% and +4.88%.

[Themes containing INDORAMA]

INDORAMA showed a strong bullish trend over the last 3 months. During this period INDORAMA surged by +76.09% and saw a maximum drawdown of -17.62%. There were 2 long signals during this period that returned a cumulative of +52.88% to investors.


INDORAMA has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 12 Jan, 2018 to 4 Dec, 2018. Over the last 3 years and 1 month, INDORAMA underperformed the NIFTY-50 index on 54% days.

INDORAMA was profitable on 55% days in the last three months. During this time, it delivered on average +1.01% per day. It delivered it's best daily return of +19.88%, during this period, on Wednesday, 12 Dec, 2018. The longest stort-term trend during this period was 8 profitable days, which started on 29 Oct, 2018 and went on till 7 Nov, 2018. This bullish trend returned +9.83% to investors.

During the last year INDORAMA had 3 profitable months and 9 loss making months. INDORAMA returned profits in fewer months than NIFTY-50 index. INDORAMA significantly outperformed NIFTY-50 index in Dec 2018, when it returned +74.23% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. INDORAMA 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 -65.48%. It is interesting to note that both INDORAMA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
-- Warren Buffett

INDORAMA 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 INDORAMA's volatility from 24 Oct, 2018 to 1 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 INDORAMA has significant negative skewness in it's return distribution. This indicates that INDORAMA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in INDORAMA you may find it interesting to know that HATSUN, BATAINDIA and CUB are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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