NESTLE INDIA LIMITED performed worse than the broader market on Tuesday. It returned -0.17% to close at 11236.5. On a day when the overall market breadth was 70%, it closed higher than 62% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.
Buy-and-Hold investors in NESTLEIND experienced a maximum drawdown of -4.25% over the last three months. It returned +20.79% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +11.28%.
During the last three months NESTLEIND was mostly profitable and delivered on average +0.31% per day. It's best return during this period (of +4.44%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -3.24%) was on Monday, 19 Nov, 2018. There was initially a bullish trend during this period which started on 23 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +8.32% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 6 Dec, 2018. This bearish trend lost -4.32% of investor capital.
On monthly basis, NESTLEIND delivered profits in more months over the last year, than losses. NESTLEIND delivered profits in more months than NIFTY-50 index. NESTLEIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -16.32% compared to -6.42% returned by NIFTY-50 index in Sep 2018. NESTLEIND had a longer winning streak of profitable months than NIFTY-50 index. It went up in 7 straight months (from Feb 2018 to Aug 2018) during which period it delivered +46.04%. It is interesting to note that both NESTLEIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Security depends not so much upon how much you have, as upon how much you can do without.
-- Joseph Wood Krutch
NESTLEIND 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 NESTLEIND's volatility from 8 Jan, 2019 to 22 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 NESTLEIND 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.
Investors trading in NESTLEIND derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.
NESTLEIND has more chance of extreme outcomes than the NIFTY-50 index. Therefore, NESTLEIND must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than NESTLEIND.
Based on your interest in NESTLEIND you may find it interesting to know that ASTRAZEN is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.
... 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