78.8 -0.79 (-1.0%) Sell

JINDALSAW continues its fall as more investors loose confidence

13 min read

JINDAL SAW LIMITED trailed the broader market on Friday. It returned -1.0% to close at 78.8. It is currently trading -54% below it's 52 week high of 173.95.

[Themes containing JINDALSAW]

JINDALSAW is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +2.1% for investors.


JINDALSAW has been underperforming the NIFTY-50 index in recent time, after having outperformed till 15 Jan, 2018. Over the last 3 years and 1 month, JINDALSAW underperformed the NIFTY-50 index on 53% days.

During the last three months JINDALSAW delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +8.07%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -2.77%) was on Tuesday, 20 Nov, 2018. There was initially a bullish trend during this period which started on 24 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +21.47% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -8.49% of investor capital.

On monthly basis, JINDALSAW delivered losses in more months over the last year, than profits. JINDALSAW delivered profits less regularly than NIFTY-50 index. JINDALSAW was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -23.25% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JINDALSAW 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 -61.77%. It is interesting to note that both JINDALSAW and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Opportunity is missed by most people because it is dressed in overalls and looks like work.
-- Thomas Edison

JINDALSAW 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 JINDALSAW's volatility from 31 Oct, 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 JINDALSAW has significant negative skewness in it's return distribution. This indicates that JINDALSAW is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in JINDALSAW), two small cap instruments that deserve special mention are NIITTECH and RESPONIND. They have significantly outperformed the overall market.

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