140.65 -0.65 (-0.46%) Sell

L&TFH continues its fall as more investors loose confidence

14 min read

L&T FINANCE HOLDINGS LTD ranked worse than it's peers today. It fell by -0.46% to close at 140.65. It's recent 5 day performance has been -0.39%, +0.57%, +3.52%, -3.71% and -1.94%.

[Themes containing L&TFH]

L&TFH is currently in a bearish trend. The previous short signal in L&TFH has not been profitable for investors in general. If you are short on L&TFH at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


L&TFH has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 18 Feb, 2016 to 21 Sep, 2017. Over the last 3 years and 1 month, L&TFH outperformed the NIFTY-50 index on 47% days. Which indicates that on days L&TFH 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 L&TFH was mostly profitable and delivered on average +0.3% per day. It's best return during this period (of +6.34%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -7.5%) was on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 26 Oct, 2018 and went on till 1 Nov, 2018. This bullish trend returned +15.09% to investors.

During the last year L&TFH had 5 profitable months and 7 loss making months. Profitable number of months of L&TFH and NIFTY-50 index were the same. L&TFH was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -28.56% compared to -6.42% returned by NIFTY-50 index in Sep 2018. L&TFH and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both L&TFH and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.

L&TFH 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 L&TFH's volatility from 19 Oct, 2018 to 5 Dec, 2018. 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 L&TFH has significant positive skewness in it's return distribution. This indicates that investors can expect L&TFH to recover from drawdowns quickly. Which makes L&TFH a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in L&TFH derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in L&TFH you may find it interesting to know that VINATIORGA, NIITTECH and ASTRAZEN are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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