89.15 +0.65 (+0.73%) Buy

PRAKASH investors update their stop-losses higher

13 min read

PRAKASH INDUSTRIES LTD ranked better than it's peers on Wednesday. It delivered +0.73% to close at 89.15. It is currently trading -63% below it's 52 week high of 242.3.

[Themes containing PRAKASH]

PRAKASH is currently in a bullish trend. Over the last three months trading long signals has not been a profitable strategy for PRAKASH's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -14.28%). It is therefore better to tread with caution in the current uptrend by limiting your allocation to PRAKASH.


PRAKASH has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 12 Feb, 2016 to 15 Jan, 2018. Over the last 3 years and 1 month, PRAKASH outperformed the NIFTY-50 index on 46% days. Which indicates that on days PRAKASH outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months PRAKASH was mostly loss making and delivered on average -0.19% per day. It's best return during this period (of +7.28%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -8.26%) was on Wednesday, 5 Dec, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 4 Jan, 2019 and went on till 11 Jan, 2019. This bullish trend returned +23.26% to investors.

The last 12 months saw PRAKASH's investors making profits in 3 months and incurring losses in 9 months. PRAKASH was less consistent in delivering monthly returs than NIFTY-50 index. PRAKASH was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -26.12% compared to -6.42% returned by NIFTY-50 index in Sep 2018. PRAKASH had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -54.1%. It is interesting to note that both PRAKASH and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Try to save something while your salary is small; It's impossible to save after you begin to earn more.
-- Jack Benny

PRAKASH 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 PRAKASH's volatility from 25 Oct, 2018 to 11 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 PRAKASH has significant negative skewness in it's return distribution. This indicates that PRAKASH is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in PRAKASH you may find it interesting to know that NIFTY-GS-15YRPLUS and BAJFINANCE have both shown remarkable performance and deserve to be on every investors' watchlist.

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