1090.75 +41.58 (+3.81%) Sell

Don't go profit booking on NSIL now, it delivered a decent return

13 min read

NALWA SONS INVESTMENT LTD delivered stellar performance today. It gained +3.81% to close at 1090.75. It's recent 5 day performance has been -3.23%, +1.28%, -2.38%, +4.93% and +0.15%.

[Themes containing NSIL]

NSIL showed a up trend over the last 3 months. During this period NSIL gained +2.13% and saw a maximum drawdown of -12.52%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in NSIL till volatility reduces and a clear trend emerges.


NSIL has been underperforming the NIFTY-50 index in recent time, after having outperformed till 3 Jan, 2018. Over the last 3 years and 1 month, NSIL outperformed the NIFTY-50 index on 48% days. Which indicates that on days NSIL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

NSIL was profitable on 51% days in the last three months. During this time, it delivered on average +0.07% per day. It delivered it's worst daily return of -5.81%, during this period, on Wednesday, 2 Jan, 2019. There was initially a bullish trend during this period which started on 2 Nov, 2018 and went on till 9 Nov, 2018. The bullish trend returned +7.57% to investors. This was followed by a bearish trend that started on 19 Nov, 2018 and ended on 22 Nov, 2018. This bearish trend lost -5.43% of investor capital.

On monthly basis, NSIL delivered profits and losses in equal number of months. NSIL delivered profits in more months than NIFTY-50 index. NSIL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -13.36% compared to -6.42% returned by NIFTY-50 index in Sep 2018. NSIL had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Mar 2018 to May 2018) during which period it delivered +11.59%.

The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Philip Arthur Fisher

NSIL is becoming more 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 NSIL's volatility from 19 Oct, 2018 to 1 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 NSIL has significant negative skewness in it's return distribution. This indicates that NSIL is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in NSIL), two small cap instruments that deserve special mention are RESPONIND and IGARASHI. They have significantly outperformed the overall market.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... 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
Share with friends   WhatsApp   Facebook   Twitter