614.1 -122.8 (-20.0%) Sell

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

13 min read

LINDEINDIA is a falling knife that can bleed you if you catch it today. On a longer term basis, investors in LINDE INDIA LIMITED made +0.07% per day. Friday's performance of -20.0% was a underperformance compared to it's daily average.

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LINDEINDIA showed a strong bullish trend over the last 3 months. During this period LINDEINDIA increased by +46.21% and saw a maximum drawdown of -22.38%. There was a long signal during this period which returned +36.38%.


LINDEINDIA has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 29 Aug, 2018 to 11 Jan, 2019. Over the last 3 years and 1 month, LINDEINDIA outperformed the NIFTY-50 index on 47% days. Which indicates that on days LINDEINDIA 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 LINDEINDIA was mostly profitable and delivered on average +0.71% per day. It's best return during this period (of +20.0%) was on Friday, 9 Nov, 2018. While it's worst loss in the same period (of -20.0%) was on Friday, 18 Jan, 2019. The longest stort-term trend during this period was 6 profitable days, which started on 7 Nov, 2018 and went on till 15 Nov, 2018. This bullish trend returned +38.62% to investors.

The last 12 months saw LINDEINDIA's investors making profits in 5 months and incurring losses in 7 months. During the last year, LINDEINDIA and NIFTY-50 index had the same number of profitable months. LINDEINDIA significantly outperformed NIFTY-50 index in Nov 2018, when it returned +54.35% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. LINDEINDIA had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered +62.99%. It is interesting to note that both LINDEINDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

He who loses money, loses much; He who loses a friend, loses much more; He who loses faith, loses all.
-- Eleanor Roosevelt

LINDEINDIA is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in LINDEINDIA's volatility from 19 Oct, 2018 to 25 Oct, 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 LINDEINDIA has significant negative skewness in it's return distribution. This indicates that LINDEINDIA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in LINDEINDIA you may find it interesting to know that BATAINDIA and CUB are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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