PERSISTENT shows sign of weakness as investors do cost averaging
18 Jan, 201913 min read
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PERSISTENT SYSTEMS LTD ranked better than it's peers today. It delivered +0.15% to close at 550.75. It's recent 5 day performance has been -0.34%, +0.45%, -0.39%, +0.7% and -2.61%.
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PERSISTENT is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +24.85% for investors.
PERSISTENT has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 29 Mar, 2016 to 17 Jan, 2019. Over the last 3 years and 1 month, PERSISTENT underperformed the NIFTY-50 index on 53% days.
During the last three months PERSISTENT was mostly loss making and delivered on average -0.25% per day. It's best return during this period (of +6.57%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -15.33%) was on Monday, 22 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 2 Jan, 2019 and ended on 11 Jan, 2019. This bearish trend lost -13.14% of investor capital.
During the last year PERSISTENT had 6 profitable months and 6 loss making months. PERSISTENT returned profits in more months than NIFTY-50 index. PERSISTENT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Oct 2018, returned -25.3% compared to -6.42% returned by NIFTY-50 index in Sep 2018. PERSISTENT had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Aug 2018 to Oct 2018) during which period it delivered -30.98%.
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PERSISTENT 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 fall in PERSISTENT's volatility from 22 Oct, 2018 to 21 Dec, 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 PERSISTENT has positive skewness in it's return distribution. This indicates that investors can expect PERSISTENT to make attempts to recover from drawdowns quickly. Which makes PERSISTENT a good candidate for momentum based trading on short-term bullish trends or counter-trends.
NIFTY-50 index has more chance of extreme outcomes than PERSISTENT. Therefore, NIFTY-50 must receive a lower allocation than PERSISTENT in your portfolio. NIFTY-50 index usually has shorter drawdown period than PERSISTENT.
Based on your interest in PERSISTENT you may find it interesting to know that GET&D and REDINGTON have both performed similar to PERSISTENT and can be considered by investors as alternative investment options.
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