Search for alternative investments is on for MEGASOFT investors as it ranked worse than it's peers
18 Jan, 201913 min read
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MEGASOFT LTD underperformed broader market on Friday. It lost -1.39% to close at 7.1. It is currently trading -57% below it's 52 week high of 16.55.
MEGASOFT is currently in a down trend. The previous short signal in MEGASOFT has not been profitable for investors in general. If you are short on MEGASOFT at current levels please make sure that your allocation is limited and that your portfolio is well diversified.
MEGASOFT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 13 Oct, 2016. Over the last 3 years and 1 month, MEGASOFT underperformed the NIFTY-50 index on 57% days.
MEGASOFT returned losses on 65% days in the last three months. During this time, it delivered on average +0.28% per day. It delivered it's best daily return of +19.62%, during this period, on Wednesday, 5 Dec, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +18.7% to investors. This was followed by a bearish trend that started on 20 Dec, 2018 and ended on 27 Dec, 2018. This bearish trend lost -13.18% of investor capital.
MEGASOFT had 2 profitable and 10 loss making months over the last year. During the last year, MEGASOFT underperformed NIFTY-50 index on monthly return basis. MEGASOFT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -27.22% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MEGASOFT had a longer winning streak of losing months than NIFTY-50 index. It went down in 8 straight months (from Feb 2018 to Sep 2018) during which period it delivered -85.96%. It is interesting to note that both MEGASOFT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros
MEGASOFT 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 MEGASOFT's volatility from 22 Oct, 2018 to 10 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 MEGASOFT has significant negative skewness in it's return distribution. This indicates that MEGASOFT is very risky for short-term investment and can significantly underperform for long durations.
MEGASOFT has more chance of extreme outcomes than the NIFTY-50 index. Therefore, MEGASOFT must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than MEGASOFT.
On a general note (since you are interested in MEGASOFT), ASTRAZEN is a small cap that deserves to be closely tracked for investment opportunities.
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