27.45 -0.35 (-1.26%) Sell

Waiting to invest in ORIENTABRA? Look for alternatives because it underperformed broader market

13 min read

ORIENT ABRASIVE LTD underperformed broader market on Friday. It delivered -1.26% to close at 27.45. On a day when the overall market breadth was 71%, it closed higher than 56% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing ORIENTABRA]

ORIENTABRA showed a bullish trend over the last 3 months. During this period ORIENTABRA surged by +5.37% and saw a maximum drawdown of -23.92%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in ORIENTABRA till volatility reduces and a clear trend emerges.


ORIENTABRA has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, ORIENTABRA underperformed the NIFTY-50 index on 59% days.

ORIENTABRA returned losses on 60% days in the last three months. During this time, it delivered on average +0.13% per day. It delivered it's best daily return of +9.9%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trends during this period were 7 profitable and losing days. The bullish trend (which returned +40.16%) started on 29 Oct, 2018 and went on till 6 Nov, 2018 while the bearish trend (which returned -20.6%) started on 7 Nov, 2018 and went on till 16 Nov, 2018.

The last 12 months saw ORIENTABRA's investors making profits in 4 months and incurring losses in 8 months. ORIENTABRA was less consistent in delivering monthly returs than NIFTY-50 index. ORIENTABRA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -19.84% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ORIENTABRA 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 +8.3%. It is interesting to note that both ORIENTABRA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

When you stop chasing the wrong things you give the right things a chance to catch you.
-- Lolly Daskal

ORIENTABRA is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in ORIENTABRA's volatility from 22 Oct, 2018 to 23 Oct, 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 ORIENTABRA has significant negative skewness in it's return distribution. This indicates that ORIENTABRA is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ORIENTABRA you may find it interesting to know that BRITANNIA, ~CHEMICALS and ~MKTCAP201TO250 have all shown remarkable performance and qualify to be on every investor's watchlist.

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