1777.8 -2.0 (-0.11%) Buy

LTI investors not showing any loss of confidence as it pauses to catch its breath

13 min read

L&T INFOTECH LIMITED ranked worse than it's peers on Tuesday. It fell by -0.11% to close at 1777.8. On a day when the overall market breadth was 70%, it closed higher than 85% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing LTI]

LTI is currently in a bullish trend. The current bullish signal has generated a profit of +1.68% for LTI's investors in the last three months.


LTI has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 10 Oct, 2016 to 1 Oct, 2018. Over the last 2 years 6 months and 1 days, LTI outperformed the NIFTY-50 index on 49% days. Which indicates that on days LTI outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

LTI returned losses on 51% days in the last three months. During this time, it delivered on average +0.11% per day. It delivered it's best daily return of +7.69%, during this period, on Thursday, 13 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 9 Nov, 2018 and ended on 15 Nov, 2018. This bearish trend lost -5.35% of investor capital.

During the last year LTI had 7 profitable months and 5 loss making months. LTI returned profits in more months than NIFTY-50 index. LTI significantly outperformed NIFTY-50 index in Jul 2018, when it returned +13.75% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. LTI and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both LTI and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

LTI 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 LTI's volatility from 25 Oct, 2018 to 8 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 LTI has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

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

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