NIIT TECHNOLOGIES LTD performed better than the broader market today. It returned +0.21% to close at 1224.75. During the last week it returned +3.12% and saw a maximum drawdown of -0.13% before bouncing back.
Buy-and-Hold investors in NIITTECH experienced a maximum drawdown of -15.69% over the last three months. It lost -1.09% during this down trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals. The net profit from Short signals was +2.24%.
NIITTECH has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, NIITTECH outperformed the NIFTY-50 index on 48% days. Which indicates that on days NIITTECH 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 NIITTECH was mostly profitable and delivered on average -0.0% per day. It's best return during this period (of +5.09%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -3.48%) was on Thursday, 25 Oct, 2018. There was initially a bearish trend during this period which started on 13 Nov, 2018 and went on till 16 Nov, 2018. The trend delivered -5.48% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 17 Dec, 2018. This bullish trend delivered +9.36% to investors.
NIITTECH had 7 profitable and 5 loss making months over the last year. NIITTECH was profitable in more months than NIFTY-50 index. NIITTECH significantly outperformed NIFTY-50 index in Apr 2018, when it returned +32.4% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. NIITTECH and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both NIITTECH and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Some people dream of success, while other people get up every morning and make it happen.
-- Wayne Huizenga
NIITTECH 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 NIITTECH's volatility from 19 Oct, 2018 to 1 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 NIITTECH has significant negative skewness in it's return distribution. This indicates that NIITTECH is very risky for short-term investment and can significantly underperform for long durations.
Investors trading in NIITTECH derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.
NIFTY-50 index has more chance of extreme outcomes than NIITTECH. Therefore, NIFTY-50 must receive a lower allocation than NIITTECH in your portfolio. NIFTY-50 index usually has shorter drawdown period than NIITTECH.
On a general note (since you are interested in NIITTECH), two instruments that have been extremely volatile in recent times are HATSUN and NIFTY50-DIV-POINT. Investors in these instruments should consider reducing their exposure (to HATSUN and NIFTY50-DIV-POINT) and diversifying their portfolios.
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