MUNJAL SHOWA LTD was among the best performers on Friday. It returned +1.99% to close at 179.1. On a day when the overall market breadth was 71%, it closed higher than 56% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
MUNJALSHOW is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for MUNJALSHOW's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned 0.0%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to MUNJALSHOW.
MUNJALSHOW has been underperforming the NIFTY-50 index in recent time, after having outperformed till 8 Jan, 2018. Over the last 3 years and 1 month, MUNJALSHOW underperformed the NIFTY-50 index on 53% days.
During the last three months MUNJALSHOW delivered losses on 62% days. However, it still managed to end this period in a profit. It's best return during this period (of +4.24%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -2.37%) was on Thursday, 3 Jan, 2019. There was initially a bullish trend during this period which started on 31 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +7.66% to investors. This was followed by a bearish trend that started on 9 Nov, 2018 and ended on 15 Nov, 2018. This bearish trend lost -3.84% of investor capital.
MUNJALSHOW had 4 profitable and 8 loss making months over the last year. During the last year, MUNJALSHOW underperformed NIFTY-50 index on monthly return basis. MUNJALSHOW was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -16.39% compared to -6.42% returned by NIFTY-50 index in Sep 2018. MUNJALSHOW had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -20.87%. It is interesting to note that both MUNJALSHOW and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.
MUNJALSHOW 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 MUNJALSHOW's volatility from 2 Nov, 2018 to 10 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 MUNJALSHOW has significant negative skewness in it's return distribution. This indicates that MUNJALSHOW is very risky for short-term investment and can significantly underperform for long durations.
MUNJALSHOW has more chance of extreme outcomes than the NIFTY-50 index. Therefore, MUNJALSHOW must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than MUNJALSHOW.
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