13.4 -0.48 (-3.6%) Sell

KHANDSE is a falling knife, continues to bleed every investor trying to catch it

14 min read

KHANDWALA SECURITIES LTD was among the worst performers on Friday. It delivered -3.6% to close at 13.4. On a day when the overall market breadth was 71%, it closed higher than 38% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing KHANDSE]

Buy-and-Hold investors in KHANDSE experienced a maximum drawdown of -14.84% over the last three months. It delivered -7.59% 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.


KHANDSE has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 20 Dec, 2017 to 18 Jan, 2019. One must note that KHANDSE is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, KHANDSE underperformed the NIFTY-50 index on 48% days. Which indicates that on days KHANDSE underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

KHANDSE returned losses on 60% 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 -4.95%, during this period, on Friday, 4 Jan, 2019. The longest stort-term trend during this period was 6 profitable days, which started on 23 Oct, 2018 and went on till 14 Nov, 2018. This bullish trend returned +11.85% to investors.

The last 12 months saw KHANDSE's investors making profits in 3 months and incurring losses in 9 months. KHANDSE was less consistent in delivering monthly returs than NIFTY-50 index. KHANDSE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -28.26% compared to -6.75% returned by NIFTY-50 index in Oct 2018. KHANDSE and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both KHANDSE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

When I graduated, I promptly took a job in finance, making both my pre-med and poli-sci years essentially useless - or so I thought.
-- Yael Cohen

KHANDSE 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 KHANDSE's volatility from 19 Oct, 2018 to 17 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 22 Oct, 2018 to 20 Dec, 2018.

Advanced/professional short-term investors should note that KHANDSE has significant positive skewness in it's return distribution. This indicates that investors can expect KHANDSE to recover from drawdowns quickly. Which makes KHANDSE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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

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