19.95 +0.36 (+1.79%) Sell

Profit booking on the minds of MANGTIMBER investors as it ranks better than it's peers but, has not managed to breakout

13 min read

MANGALAM TIMBER PRODUCTS was among the best performers on Friday. It returned +1.79% to close at 19.95. It is currently trading -59% below it's 52 week high of 49.4.

[Themes containing MANGTIMBER]

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


MANGTIMBER has been underperforming the NIFTY-50 index in recent time, after having outperformed till 20 Dec, 2017. Over the last 3 years and 1 month, MANGTIMBER underperformed the NIFTY-50 index on 55% days.

During the last three months MANGTIMBER delivered losses on 59% days. However, it still managed to end this period in a profit. It's best return during this period (of +13.47%) was on Thursday, 22 Nov, 2018. While it's worst loss in the same period (of -6.39%) was on Monday, 26 Nov, 2018. There was initially a bearish trend during this period which started on 12 Nov, 2018 and went on till 15 Nov, 2018. The trend delivered -4.46% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 14 Dec, 2018. This bullish trend delivered +14.15% to investors.

On monthly basis, MANGTIMBER delivered profits and losses in equal number of months. MANGTIMBER delivered profits less regularly than NIFTY-50 index. MANGTIMBER was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -26.4% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MANGTIMBER had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered +14.46%. It is interesting to note that both MANGTIMBER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

An investment in knowledge pays the best interest.
-- Benjamin Franklin

MANGTIMBER is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in MANGTIMBER's volatility from 19 Oct, 2018 to 16 Nov, 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 MANGTIMBER has significant negative skewness in it's return distribution. This indicates that MANGTIMBER is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in MANGTIMBER), two large cap instruments that deserve special mention are TCS and BAJFINANCE. They have significantly outperformed the overall market.

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