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%.
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.
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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.
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