23.85 -0.05 (-0.21%) Sell

MORARJEE investors check their stop-losses as it underperforms

13 min read

MORARJEE TEXTILES LIMITED trailed the broader market today. It returned -0.21% to close at 23.85. It's recent 5 day performance has been -0.83%, -1.63%, -2.58%, +2.03% and -1.4%.

[Themes containing MORARJEE]

MORARJEE is currently in a down trend. Over the last three months Buy-and-Hold has been a better strategy (returning +7.43%) for MORARJEE's investors than shorting it.


MORARJEE has been underperforming the NIFTY-50 index in recent time, after having outperformed till 1 Nov, 2016. Over the last 3 years and 1 month, MORARJEE underperformed the NIFTY-50 index on 57% days.

MORARJEE was profitable on 52% days in the last three months. During this time, it delivered on average +0.15% per day. It delivered it's worst daily return of -6.87%, during this period, on Monday, 10 Dec, 2018. There was initially a bullish trend during this period which started on 17 Dec, 2018 and went on till 21 Dec, 2018. The bullish trend returned +11.87% to investors. This was followed by a bearish trend that started on 17 Jan, 2019 and ended on 22 Jan, 2019. This bearish trend lost -5.25% of investor capital.

On monthly basis, MORARJEE delivered losses in more months over the last year, than profits. MORARJEE delivered profits less regularly than NIFTY-50 index. MORARJEE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -24.96% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MORARJEE had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -64.64%. It is interesting to note that both MORARJEE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

MORARJEE 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 MORARJEE's volatility from 6 Nov, 2018 to 21 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 MORARJEE has significant negative skewness in it's return distribution. This indicates that MORARJEE is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in MORARJEE you may find it interesting to know that NIFTY50-DIV-POINT, IEX and SRIPIPES are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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