3189.3 +6.66 (+0.21%) Buy

MERCK continues it's uptrend, although on a weaker note

13 min read

MERCK LIMITED showed marginal outperformance today. It increased by +0.21% to close at 3189.3. It's recent 5 day performance has been -0.65%, +0.04%, +0.49%, -3.41% and -1.45%.

[Themes containing MERCK]

MERCK is currently in a bullish trend. Over the last three months 2 bullish signals in MERCK have generated a profit of +2.4% for investors.


MERCK has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 4 Oct, 2016 to 31 Aug, 2018. Over the last 3 years and 1 month, MERCK outperformed the NIFTY-50 index on 48% days. Which indicates that on days MERCK outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months MERCK was mostly profitable and delivered on average +0.31% per day. It's best return during this period (of +6.87%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -3.82%) was on Wednesday, 2 Jan, 2019. The longest stort-term trend during this period was 5 profitable days, which started on 26 Dec, 2018 and went on till 1 Jan, 2019. This bullish trend returned +9.47% to investors.

The last 12 months saw MERCK's investors making profits in 8 months and incurring losses in 4 months. During the last year, MERCK delivered profits in more months than NIFTY-50 index. MERCK significantly outperformed NIFTY-50 index in Aug 2018, when it returned +55.06% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MERCK had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Apr 2018 to Jun 2018) during which period it delivered +52.84%. It is interesting to note that both MERCK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

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MERCK 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 MERCK's volatility from 26 Oct, 2018 to 13 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 MERCK has significant negative skewness in it's return distribution. This indicates that MERCK is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in MERCK you may find it interesting to know that TCS and TORNTPHARM are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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