MOTHERSON SUMI SYSTEMS LT

157.55 -2.02 (-1.28%) Sell

MOTHERSUMI continues its fall as more investors loose confidence

14 min read

MOTHERSON SUMI SYSTEMS LT underperformed on Friday. It fell by -1.28% to close at 157.55. On a day when the overall market breadth was 71%, it closed higher than 53% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing MOTHERSUMI]

MOTHERSUMI showed a bearish trend over the last 3 months. During this period MOTHERSUMI fell by -7.7% and saw a maximum drawdown of -17.31%. There was a short signal during this period which returned +7.7%.

Trend

MOTHERSUMI has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 19 Dec, 2017 to 15 Nov, 2018. Over the last 3 years and 1 month, MOTHERSUMI underperformed the NIFTY-50 index on 48% days. Which indicates that on days MOTHERSUMI underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

MOTHERSUMI returned losses on 56% days in the last three months. During this time, it delivered on average -0.09% per day. It delivered it's best daily return of +8.32%, during this period, on Friday, 2 Nov, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +14.68%) started on 12 Dec, 2018 and went on till 18 Dec, 2018 while the bearish trend (which returned -10.95%) started on 5 Dec, 2018 and went on till 11 Dec, 2018.

During the last year MOTHERSUMI had 3 profitable months and 9 loss making months. MOTHERSUMI returned profits in fewer months than NIFTY-50 index. MOTHERSUMI was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -15.55% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MOTHERSUMI had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Aug 2018 to Nov 2018) during which period it delivered -26.67%. It is interesting to note that both MOTHERSUMI and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.
-- Norman Vincent Peale

MOTHERSUMI 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 MOTHERSUMI's volatility from 19 Oct, 2018 to 16 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 MOTHERSUMI has significant positive skewness in it's return distribution. This indicates that investors can expect MOTHERSUMI to recover from drawdowns quickly. Which makes MOTHERSUMI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in MOTHERSUMI derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in MOTHERSUMI you may find it interesting to know that CUB is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter