POWER GRID CORP. LTD. managed to marginally outperform the broader market today. It gained +1.97% to close at 196.35. It's recent 5 day performance has been +3.69%, +1.73%, 0.0%, +1.25% and +0.56%.
POWERGRID showed a flat trend over the last 3 months. During this period POWERGRID returned -0.98% and saw a maximum drawdown of -10.53%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in POWERGRID till volatility reduces and a clear trend emerges.
POWERGRID has been outperforming the NIFTY-50 index in recent time. Over the last 2 years and 12 months, POWERGRID outperformed the NIFTY-50 index on 50% days. Which indicates that on days POWERGRID outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
POWERGRID was profitable on 51% days in the last three months. During this time, it delivered on average -0.01% per day. It delivered it's best daily return of +3.69%, during this period, on Monday, 17 Dec, 2018. There was initially a bearish trend during this period which started on 5 Oct, 2018 and went on till 9 Oct, 2018. The trend delivered -1.43% losses to investors. This was followed by a bullish trend that started on 11 Dec, 2018 and ended on 18 Dec, 2018. This bullish trend delivered +9.2% to investors.
POWERGRID had 5 profitable and 7 loss making months over the last year. During the last year, POWERGRID underperformed NIFTY-50 index on monthly return basis. POWERGRID was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -10.94% compared to -6.42% returned by NIFTY-50 index in Sep 2018. POWERGRID had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -11.65%.
Success usually comes to those who are too busy to be looking for it.
-- Henry David Thoreau
POWERGRID 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 surge in POWERGRID's volatility from 19 Sep, 2018 to 1 Oct, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that POWERGRID 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 POWERGRID derivatives at this moment can consider 'Bull Call Spread' options strategy to receive better risk-adjusted returns.
POWERGRID has more chance of extreme outcomes than the NIFTY-50 index. Therefore, POWERGRID must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than POWERGRID.
On a general note (since you are interested in POWERGRID), VMART has performed really well this year and deserves to be closely tracked for investment opportunities.
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