671.95 -9.71 (-1.44%) Buy

MOTILALOFS investors check their stop-losses as it underperforms

13 min read

MOTILAL OSWAL FIN LTD is a falling knife that can bleed you if you catch it on Friday. It lost -1.44% to close at 671.95. It is currently trading -55% below it's 52 week high of 1509.45.

[Themes containing MOTILALOFS]

MOTILALOFS is currently in a up trend. The current bullish signal has generated a profit of +3.9% for MOTILALOFS's investors in the last three months.


MOTILALOFS has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, MOTILALOFS outperformed the NIFTY-50 index on 49% days. Which indicates that on days MOTILALOFS outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

MOTILALOFS was profitable on 50% days in the last three months. During this time, it delivered on average +0.13% per day. It delivered it's best daily return of +6.17%, during this period, on Thursday, 1 Nov, 2018. There was initially a bearish trend during this period which started on 20 Nov, 2018 and went on till 27 Nov, 2018. The trend delivered -4.28% losses to investors. This was followed by a bullish trend that started on 18 Dec, 2018 and ended on 28 Dec, 2018. This bullish trend delivered +12.32% to investors.

MOTILALOFS had 3 profitable and 9 loss making months over the last year. During the last year, MOTILALOFS underperformed NIFTY-50 index on monthly return basis. MOTILALOFS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -18.65% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MOTILALOFS 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 -46.37%. It is interesting to note that both MOTILALOFS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

MOTILALOFS is becoming more 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 MOTILALOFS's volatility from 31 Oct, 2018 to 10 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 MOTILALOFS 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.

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

On a general note (since you are interested in MOTILALOFS), two mid cap instruments that deserve special mention are LTI and BATAINDIA. They have significantly outperformed the overall market.

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