127.1 -0.84 (-0.66%) Buy

NCLIND investors not showing any loss of confidence as it pauses to catch its breath

13 min read

NCL INDUSTRIES LIMITED ranked worse than it's peers on Tuesday. It delivered -0.66% to close at 127.1. It is currently trading -56% below it's 52 week high of 291.5.

[Themes containing NCLIND]

NCLIND is currently in a bullish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +6.54%) for NCLIND's investors than trading long signals.


NCLIND has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 23 Jan, 2018 to 29 Nov, 2018. Over the last 3 years and 1 month, NCLIND underperformed the NIFTY-50 index on 54% days.

During the last three months NCLIND delivered losses on 62% days. However, it still managed to end this period in a profit. It's best return during this period (of +6.66%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -5.68%) was on Monday, 24 Dec, 2018. The longest stort-term trends during this period were 7 profitable and losing days. The bullish trend (which returned +22.69%) started on 11 Dec, 2018 and went on till 19 Dec, 2018 while the bearish trend (which returned -8.22%) started on 5 Nov, 2018 and went on till 14 Nov, 2018.

The last 12 months saw NCLIND's investors making profits in 4 months and incurring losses in 8 months. NCLIND was less consistent in delivering monthly returs than NIFTY-50 index. NCLIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -18.37% compared to -6.42% returned by NIFTY-50 index in Sep 2018. NCLIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -22.29%. It is interesting to note that both NCLIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Time is more value than money. You can get more money, but you cannot get more time.
-- Jim Rohn

NCLIND 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 NCLIND's volatility from 25 Oct, 2018 to 6 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 NCLIND has significant negative skewness in it's return distribution. This indicates that NCLIND is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in NCLIND), three large cap instruments that deserve special mention are TORNTPHARM, BRITANNIA and INFY. They have all outperformed the market and must be closely watched for investment opportunities.

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