31.25 -0.97 (-3.1%) Sell

JSL investors dump it for better alternatives

13 min read

JINDAL STAINLESS LIMITED has destroyed investor wealth on Friday. It lost -3.1% to close at 31.25 which is it's 52 week low, down -74% from it's 52 week high.

[Themes containing JSL]

JSL is currently in a down trend. The current bearish signal has generated a profit of +43.95% for investors in the last three months.


JSL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 8 Jan, 2018. Over the last 3 years and 1 month, JSL underperformed the NIFTY-50 index on 53% days.

JSL returned losses on 62% days in the last three months. During this time, it delivered on average -0.89% per day. It delivered it's worst daily return of -6.66%, during this period, on Tuesday, 20 Nov, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 30 Oct, 2018. The bullish trend returned +6.0% to investors. This was followed by a bearish trend that started on 16 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -24.61% of investor capital.

JSL had 2 profitable and 10 loss making months over the last year. During the last year, JSL underperformed NIFTY-50 index on monthly return basis. JSL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Nov 2018, returned -29.4% compared to -6.42% returned by NIFTY-50 index in Sep 2018. JSL had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -69.2%. It is interesting to note that both JSL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each.
-- Christopher Rice

JSL 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 JSL's volatility from 29 Oct, 2018 to 16 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 JSL has positive skewness in it's return distribution. This indicates that investors can expect JSL to make attempts to recover from drawdowns quickly. Which makes JSL a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

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

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