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%.


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.

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