MAHANAGAR GAS LTD. managed to outperform the broader market today. It surged by +0.51% to close at 904.45. It's recent 5 day performance has been +0.23%, -0.19%, +1.59%, -0.88% and -0.71%.
MGL is currently in a bullish trend. Over the last three months 2 bullish signals in MGL have generated a profit of +0.31% for investors.
MGL has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 27 Jul, 2016 to 6 Nov, 2017. Over the last 2 years and 7 months, MGL outperformed the NIFTY-50 index on 50% days. Which indicates that on days MGL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
MGL was profitable on 51% days in the last three months. During this time, it delivered on average +0.18% per day. It delivered it's best daily return of +3.02%, during this period, on Wednesday, 12 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 21 Nov, 2018 and ended on 29 Nov, 2018. This bearish trend lost -5.39% of investor capital.
The last 12 months saw MGL's investors making profits in 6 months and incurring losses in 6 months. During the last year, MGL delivered profits in more months than NIFTY-50 index. MGL significantly outperformed NIFTY-50 index in Jul 2018, when it returned +11.51% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MGL had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Mar 2018 to May 2018) during which period it delivered -27.28%. It is interesting to note that both MGL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Average investors who try to do a lot of trading will only make their brokers rich.
-- Michael Jenson
MGL is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in MGL's volatility from 25 Oct, 2018 to 17 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 MGL has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
Investors trading in MGL derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.
NIFTY-50 index has more chance of extreme outcomes than MGL. Therefore, NIFTY-50 must receive a lower allocation than MGL in your portfolio. NIFTY-50 index usually has shorter drawdown period than MGL.
Based on your interest in MGL you may find it interesting to know that BAJFINANCE, TCS and TORNTPHARM are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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