871.6 -28.16 (-3.23%) Sell

MPHASIS is a falling knife, continues to bleed every investor trying to catch it

13 min read

MPHASIS LIMITED was among the worst performers on Friday. It returned -3.23% to close at 871.6. It is currently trading -31% below it's 52 week high of 1268.85.

[Themes containing MPHASIS]

MPHASIS is currently in a down trend. The current bearish signal has generated a profit of +18.36% for investors in the last three months.


MPHASIS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Sep, 2018. Over the last 3 years and 1 month, MPHASIS outperformed the NIFTY-50 index on 49% days. Which indicates that on days MPHASIS outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months MPHASIS was mostly loss making and delivered on average -0.29% per day. It's best return during this period (of +5.58%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -4.98%) was on Thursday, 25 Oct, 2018. There was initially a bullish trend during this period which started on 7 Nov, 2018 and went on till 12 Nov, 2018. The bullish trend returned +6.5% to investors. This was followed by a bearish trend that started on 1 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -14.81% of investor capital.

On monthly basis, MPHASIS delivered profits and losses in equal number of months. MPHASIS delivered profits in more months than NIFTY-50 index. MPHASIS significantly outperformed NIFTY-50 index in Apr 2018, when it returned +22.93% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. MPHASIS and NIFTY-50 index, both had periods of 2 consecutive profitable months.

"When you're building a company, you need to continually strengthen every component - finance, strategic partnerships, executive team, and relationships with every last constituency.

MPHASIS 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 MPHASIS's volatility from 26 Oct, 2018 to 20 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 MPHASIS has significant negative skewness in it's return distribution. This indicates that MPHASIS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in MPHASIS), ~MKTCAP201TO250 has performed really well and deserves to be closely tracked for investment opportunities.

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