24.95 -0.73 (-2.92%) Sell

MIRCELECTR investors looking to exit as part of sectoral rotation

13 min read

MIRC ELECTRONICS LTD was among the worst performers on Tuesday. It delivered -2.92% to close at 24.95. It is currently trading -56% below it's 52 week high of 57.85.

[Themes containing MIRCELECTR]

MIRCELECTR is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for MIRCELECTR's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned +2.46%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to MIRCELECTR.


MIRCELECTR has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 24 Aug, 2016 to 20 Dec, 2017. Over the last 3 years and 1 month, MIRCELECTR underperformed the NIFTY-50 index on 56% days.

MIRCELECTR returned losses on 64% days in the last three months. During this time, it delivered on average +0.12% per day. It delivered it's best daily return of +19.83%, during this period, on Tuesday, 18 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 30 Nov, 2018 and ended on 10 Dec, 2018. This bearish trend lost -14.98% of investor capital.

The last 12 months saw MIRCELECTR's investors making profits in 3 months and incurring losses in 9 months. MIRCELECTR was less consistent in delivering monthly returs than NIFTY-50 index. MIRCELECTR was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -28.11% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MIRCELECTR had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -66.41%. It is interesting to note that both MIRCELECTR and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Watch your finances like a hawk.

MIRCELECTR 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 MIRCELECTR's volatility from 5 Nov, 2018 to 6 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 MIRCELECTR has significant negative skewness in it's return distribution. This indicates that MIRCELECTR is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in MIRCELECTR), two small cap instruments that deserve special mention are VINATIORGA and IGARASHI. They have significantly outperformed the overall market.

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