1148.8 -2.74 (-0.24%) Sell

PIDILITIND investors check their stop-losses as it underperforms

13 min read

PIDILITE INDUSTRIES LTD ranked worse than it's peers today. It returned -0.24% to close at 1148.8. During the last week it gained +1.25% and saw a maximum drawdown of -1.72% before bouncing back.

[Themes containing PIDILITIND]

Buy-and-Hold investors in PIDILITIND experienced a maximum drawdown of -8.57% over the last three months. It gained +18.36% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +6.99%.


PIDILITIND has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, PIDILITIND outperformed the NIFTY-50 index on 51% days.

PIDILITIND was profitable on 55% days in the last three months. During this time, it delivered on average +0.28% per day. It delivered it's worst daily return of -4.99%, during this period, on Tuesday, 23 Oct, 2018. There was initially a bullish trend during this period which started on 13 Nov, 2018 and went on till 22 Nov, 2018. The bullish trend returned +12.19% to investors. This was followed by a bearish trend that started on 20 Dec, 2018 and ended on 26 Dec, 2018. This bearish trend lost -8.3% of investor capital.

On monthly basis, PIDILITIND delivered profits in more months over the last year, than losses. PIDILITIND delivered profits in more months than NIFTY-50 index. PIDILITIND significantly outperformed NIFTY-50 index in Nov 2018, when it returned +21.32% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. PIDILITIND had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Feb 2018 to May 2018) during which period it delivered +24.49%. It is interesting to note that both PIDILITIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Success usually comes to those who are too busy to be looking for it.
-- Henry David Thoreau

PIDILITIND 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 PIDILITIND's volatility from 23 Oct, 2018 to 8 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 PIDILITIND has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in PIDILITIND derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in PIDILITIND), HATSUN is a mid cap that deserves to be closely tracked for investment opportunities.

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