1256.65 +36.53 (+2.91%) Sell

Profit booking on the minds of LUXIND investors as it shows marginal outperformance

13 min read

LUX INDUSTRIES LIMITED delivered stellar performance on Wednesday. It gained +2.91% to close at 1256.65. It is currently trading -39% below it's 52 week high of 2072.85.

[Themes containing LUXIND]

Buy-and-Hold investors in LUXIND experienced a maximum drawdown of -31.67% over the last three months. It returned -15.09% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +15.09% for investors.


LUXIND has been underperforming the NIFTY-50 index in recent time, after having outperformed till 9 May, 2018. Over the last 3 years and 1 month, LUXIND outperformed the NIFTY-50 index on 45% days. Which indicates that on days LUXIND outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

LUXIND returned losses on 70% days in the last three months. During this time, it delivered on average -0.23% per day. It delivered it's best daily return of +11.35%, during this period, on Tuesday, 15 Jan, 2019. There was initially a bullish trend during this period which started on 31 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +6.69% to investors. This was followed by a bearish trend that started on 13 Dec, 2018 and ended on 31 Dec, 2018. This bearish trend lost -12.48% of investor capital.

On monthly basis, LUXIND delivered losses in more months over the last year, than profits. LUXIND delivered profits less regularly than NIFTY-50 index. LUXIND significantly outperformed NIFTY-50 index in Apr 2018, when it returned +13.68% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. LUXIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 7 straight months (from Jul 2018 to Jan 2019) during which period it delivered -38.2%. It is interesting to note that both LUXIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"I believe that through knowledge and discipline, financial peace is possible for all of us.

LUXIND 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 surge in LUXIND's volatility from 26 Nov, 2018 to 15 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 LUXIND has significant negative skewness in it's return distribution. This indicates that LUXIND is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in LUXIND), BRITANNIA has performed really well and 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