216.15 +2.63 (+1.22%) Buy

KPIT continues to mint money for it's investors

13 min read

KPIT TECHNOLOGIES LTD delivered stellar performance on Friday. It gained +1.22% to close at 216.15. It is currently trading -30% below it's 52 week high of 310.1.

[Themes containing KPIT]

KPIT is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning +2.1%) for KPIT's investors than trading long signals.


KPIT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 10 Sep, 2018. Over the last 3 years and 1 month, KPIT underperformed the NIFTY-50 index on 51% days.

KPIT was profitable on 50% days in the last three months. During this time, it delivered on average +0.05% per day. It delivered it's best daily return of +5.01%, during this period, on Wednesday, 19 Dec, 2018. There was initially a bullish trend during this period which started on 26 Nov, 2018 and went on till 29 Nov, 2018. The bullish trend returned +3.59% to investors. This was followed by a bearish trend that started on 1 Jan, 2019 and ended on 8 Jan, 2019. This bearish trend lost -5.27% of investor capital.

On monthly basis, KPIT delivered profits in more months over the last year, than losses. KPIT delivered profits in more months than NIFTY-50 index. KPIT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -29.57% compared to -6.42% returned by NIFTY-50 index in Sep 2018. KPIT had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Feb 2018 to May 2018) during which period it delivered +25.48%. It is interesting to note that both KPIT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Don't tell me what you value, show me your budget, and I'll tell you what you value.
-- Joe Biden

KPIT is becoming more 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 KPIT's volatility from 19 Oct, 2018 to 10 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 KPIT has significant positive skewness in it's return distribution. This indicates that investors can expect KPIT to recover from drawdowns quickly. Which makes KPIT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in KPIT derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

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

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

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter