85.3 -0.3 (-0.35%) Buy

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

13 min read

MAX INDIA LIMITED underperformed on Tuesday. It returned -0.35% to close at 85.3. On a day when the overall market breadth was 70%, it closed higher than 20% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing MAXINDIA]

Buy-and-Hold investors in MAXINDIA experienced a maximum drawdown of -18.31% over the last three months. It returned +25.17% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +19.78%.


MAXINDIA has been outperforming the NIFTY-50 index in recent time. Over the last 2 years and 6 months, MAXINDIA underperformed the NIFTY-50 index on 53% days.

During the last three months MAXINDIA was mostly profitable and delivered on average +0.41% per day. It's best return during this period (of +19.99%) was on Friday, 14 Dec, 2018. While it's worst loss in the same period (of -5.16%) was on Tuesday, 20 Nov, 2018. There was initially a bearish trend during this period which started on 19 Nov, 2018 and went on till 28 Nov, 2018. The trend delivered -19.88% losses to investors. This was followed by a bullish trend that started on 4 Jan, 2019 and ended on 14 Jan, 2019. This bullish trend delivered +3.3% to investors.

On monthly basis, MAXINDIA delivered losses in more months over the last year, than profits. MAXINDIA delivered profits less regularly than NIFTY-50 index. MAXINDIA significantly outperformed NIFTY-50 index in Dec 2018, when it returned +41.37% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MAXINDIA had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -35.12%. It is interesting to note that both MAXINDIA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The speed of your success is limited only by your dedication and what you're willing to sacrifice.
-- Nathan W. Morris

MAXINDIA 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 MAXINDIA's volatility from 14 Dec, 2018 to 22 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 MAXINDIA has significant negative skewness in it's return distribution. This indicates that MAXINDIA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in MAXINDIA you may find it interesting to know that HINDUNILVR is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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