POWER FIN CORP LTD. is looking better than most other alternatives on Friday. It grew by +0.28% to close at 107.3. On a day when the overall market breadth was 71%, it closed higher than 38% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
PFC is currently in a up trend. The current bullish signal has generated a profit of +17.01% for PFC's investors in the last three months.
During the last three months PFC was mostly profitable and delivered on average +0.48% per day. It's best return during this period (of +12.38%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -9.28%) was on Wednesday, 28 Nov, 2018. There was initially a bearish trend during this period which started on 5 Dec, 2018 and went on till 10 Dec, 2018. The trend delivered -14.01% losses to investors. This was followed by a bullish trend that started on 13 Dec, 2018 and ended on 20 Dec, 2018. This bullish trend delivered +14.86% to investors.
PFC had 4 profitable and 8 loss making months over the last year. During the last year, PFC underperformed NIFTY-50 index on monthly return basis. PFC significantly outperformed NIFTY-50 index in Dec 2018, when it returned +24.18% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. PFC and NIFTY-50 index, both had periods of 2 consecutive losing months. It is interesting to note that both PFC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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PFC 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 PFC's volatility from 29 Oct, 2018 to 16 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 PFC has significant negative skewness in it's return distribution. This indicates that PFC is very risky for short-term investment and can significantly underperform for long durations.
Investors trading in PFC derivatives at this moment can consider 'Long Strangle' options strategy to receive better risk-adjusted returns.
PFC has more chance of extreme outcomes than the NIFTY-50 index. Therefore, PFC must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than PFC.
On a general note (since you are interested in PFC), three instruments that deserve special mention are NIFTY-GS-15YRPLUS, ~MKTCAP201TO250 and BAJFINANCE. They have all outperformed the market and must be closely watched for investment opportunities.
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