108.0 +0.05 (+0.05%) Sell

JAICORPLTD shows sign of weakness as investors do cost averaging

13 min read

JAI CORP LIMITED is looking better than most other alternatives today. It grew by +0.05% to close at 108.0. During the last week it returned -3.66% and saw a maximum drawdown of -3.7% before bouncing back.

[Themes containing JAICORPLTD]

JAICORPLTD is currently in a down trend. Over the last three months Buy-and-Hold has been a better strategy (returning +8.11%) for JAICORPLTD's investors than shorting it.


JAICORPLTD has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Jan, 2018. Over the last 3 years and 1 month, JAICORPLTD outperformed the NIFTY-50 index on 42% days. Which indicates that on days JAICORPLTD 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 JAICORPLTD delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +9.13%) was on Wednesday, 19 Dec, 2018. While it's worst loss in the same period (of -5.05%) was on Thursday, 15 Nov, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +11.84% to investors. This was followed by a bearish trend that started on 19 Nov, 2018 and ended on 29 Nov, 2018. This bearish trend lost -9.18% of investor capital.

On monthly basis, JAICORPLTD delivered profits and losses in equal number of months. JAICORPLTD delivered profits in more months than NIFTY-50 index. JAICORPLTD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -32.11% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JAICORPLTD had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +25.18%. It is interesting to note that both JAICORPLTD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"A bull market is very much like being in love. You don't realise its value till It's gone.

JAICORPLTD 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 JAICORPLTD's volatility from 6 Nov, 2018 to 14 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 JAICORPLTD has significant negative skewness in it's return distribution. This indicates that JAICORPLTD is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in JAICORPLTD), two large cap instruments that deserve special mention are BRITANNIA and TORNTPHARM. They have significantly outperformed the overall market.

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