88.15 -3.32 (-3.77%) Sell

Prayers for NITINSPIN investors as it ranked among the worst performers

13 min read

NITIN SPINNERS LIMITED delivered massive losses on Wednesday. It delivered -3.77% to close at 88.15. It is currently trading -27% below it's 52 week high of 122.05.

[Themes containing NITINSPIN]

NITINSPIN is currently in a bearish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +19.2%) for NITINSPIN's investors than shorting it.


NITINSPIN has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 8 May, 2017 to 23 Jul, 2018. Over the last 3 years and 1 month, NITINSPIN underperformed the NIFTY-50 index on 55% days.

NITINSPIN returned losses on 59% days in the last three months. During this time, it delivered on average +0.31% per day. It delivered it's best daily return of +11.37%, during this period, on Thursday, 27 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 8 Jan, 2019 and ended on 15 Jan, 2019. This bearish trend lost -5.67% of investor capital.

The last 12 months saw NITINSPIN's investors making profits in 6 months and incurring losses in 6 months. During the last year, NITINSPIN delivered profits in more months than NIFTY-50 index. NITINSPIN was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -15.24% compared to -6.42% returned by NIFTY-50 index in Sep 2018. NITINSPIN had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +19.03%. It is interesting to note that both NITINSPIN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The speed of your success is limited only by your dedication and what you're willing to sacrifice.
-- Nathan W. Morris

NITINSPIN is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in NITINSPIN's volatility from 24 Oct, 2018 to 6 Nov, 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 NITINSPIN has significant negative skewness in it's return distribution. This indicates that NITINSPIN is very risky for short-term investment and can significantly underperform for long durations.

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

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

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