INDUSIND BANK LIMITED managed to outperform the broader market on Tuesday. It surged by +0.38% to close at 1639.55. It is currently trading -18% below it's 52 week high of 2023.05.
Buy-and-Hold investors in INDUSINDBK experienced a maximum drawdown of -24.4% over the last three months. It fell by -9.15% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +11.97%.
INDUSINDBK has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 15 Feb, 2016 to 28 Jun, 2018. Over the last 2 years and 12 months, INDUSINDBK outperformed the NIFTY-50 index on 52% days.
INDUSINDBK returned losses on 57% days in the last three months. During this time, it delivered on average -0.13% per day. It delivered it's worst daily return of -8.07%, during this period, on Monday, 22 Oct, 2018. The longest stort-term trend during this period was 6 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -6.41% of investor capital.
During the last year INDUSINDBK had 7 profitable months and 5 loss making months. INDUSINDBK returned profits in more months than NIFTY-50 index. INDUSINDBK significantly outperformed NIFTY-50 index in Nov 2018, when it returned +14.5% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. INDUSINDBK had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Mar 2018 to May 2018) during which period it delivered +15.17%. It is interesting to note that both INDUSINDBK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"Derivatives are financial weapons of mass destruction.
INDUSINDBK 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 INDUSINDBK's volatility from 24 Sep, 2018 to 6 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that INDUSINDBK has significant positive skewness in it's return distribution. This indicates that investors can expect INDUSINDBK to recover from drawdowns quickly. Which makes INDUSINDBK a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
Investors trading in INDUSINDBK derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.
INDUSINDBK has more chance of extreme outcomes than the NIFTY-50 index. Therefore, INDUSINDBK must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than INDUSINDBK.
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