19.15 -0.58 (-3.04%) Sell

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

13 min read

NECTAR LIFESCIENCES LTD. was among the worst performers today. It returned -3.04% to close at 19.15. During the last week it returned -4.96% and saw a maximum drawdown of -4.96%.

[Themes containing NECLIFE]

NECLIFE is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +5.32% for investors.


NECLIFE has been underperforming the NIFTY-50 index in recent time, after having outperformed till 6 Jan, 2016. Over the last 3 years and 1 month, NECLIFE underperformed the NIFTY-50 index on 55% days.

NECLIFE returned losses on 64% days in the last three months. During this time, it delivered on average -0.17% per day. It delivered it's best daily return of +5.22%, during this period, on Tuesday, 11 Dec, 2018. There was initially a bearish trend during this period which started on 3 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -9.38% losses to investors. This was followed by a bullish trend that started on 27 Dec, 2018 and ended on 1 Jan, 2019. This bullish trend delivered +3.49% to investors.

On monthly basis, NECLIFE delivered losses in more months over the last year, than profits. NECLIFE delivered profits less regularly than NIFTY-50 index. NECLIFE significantly outperformed NIFTY-50 index in Aug 2018, when it returned +39.31% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. NECLIFE had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -50.42%. It is interesting to note that both NECLIFE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"There is a huge amount of freedom that is derived from not fighting the market.

NECLIFE is becoming less 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 NECLIFE's volatility from 21 Dec, 2018 to 21 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 NECLIFE has significant negative skewness in it's return distribution. This indicates that NECLIFE is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in NECLIFE you may find it interesting to know that HATSUN and LTTS are both mid caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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