MASTEK LTD

420.95 -8.76 (-2.08%) Sell

MASTEK investors dump it

13 min read

MASTEK LTD was among the worst performers today. It fell by -2.08% to close at 420.95. It's recent 5 day performance has been +0.24%, +1.64%, +2.63%, -0.63% and -3.6%.

[Themes containing MASTEK]

MASTEK is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for MASTEK's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -4.45%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to MASTEK.

Trend

MASTEK has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 29 Sep, 2016 to 23 Apr, 2018. Over the last 3 years and 1 month, MASTEK outperformed the NIFTY-50 index on 46% days. Which indicates that on days MASTEK outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

MASTEK was profitable on 52% days in the last three months. During this time, it delivered on average -0.05% per day. It delivered it's best daily return of +6.08%, during this period, on Thursday, 25 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 2 Nov, 2018 and went on till 12 Nov, 2018. This bullish trend returned +7.83% to investors.

During the last year MASTEK had 6 profitable months and 6 loss making months. MASTEK returned profits in more months than NIFTY-50 index. MASTEK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -13.07% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MASTEK had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered +14.99%. It is interesting to note that both MASTEK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Investment philosophy is the clear understanding that by owning shares of stocks he owns businesses, not pieces of paper.
-- Warren Edward Buffett

MASTEK 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 fall in MASTEK's volatility from 24 Oct, 2018 to 26 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 MASTEK has significant negative skewness in it's return distribution. This indicates that MASTEK is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in MASTEK you may find it interesting to know that LTTS, CUB and LTI are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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