PSL LIMITED outperformed the broader market on Tuesday. It increased by +3.85% to close at 1.35. On a day when the overall market breadth was 70%, it closed higher than 8% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.
PSL is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +8.07% for investors.
PSL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 5 Jan, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, PSL underperformed the NIFTY-50 index on 56% days.
During the last three months PSL was mostly loss making and delivered on average -0.06% per day. It's best return during this period (of +9.38%) was on Friday, 14 Dec, 2018. While it's worst loss in the same period (of -5.0%) was on Monday, 24 Dec, 2018. The longest stort-term trend during this period was 12 losing days, which started on 3 Jan, 2019 and ended on 18 Jan, 2019. This bearish trend lost -38.56% of investor capital.
During the last year PSL had 3 profitable months and 9 loss making months. PSL returned profits in fewer months than NIFTY-50 index. PSL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -28.95% compared to -6.42% returned by NIFTY-50 index in Sep 2018. PSL had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Apr 2018 to Sep 2018) during which period it delivered -80.83%.
Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.
-- Benjamin Franklin
PSL 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 PSL's volatility from 10 Dec, 2018 to 22 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 PSL has positive skewness in it's return distribution. This indicates that investors can expect PSL to make attempts to recover from drawdowns quickly. Which makes PSL 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 PSL. Therefore, NIFTY-50 must receive a lower allocation than PSL in your portfolio. NIFTY-50 index usually has shorter drawdown period than PSL.
On a general note (since you are interested in PSL), two instruments that have been extremely volatile in recent times are SRIPIPES and IEX. Investors in these instruments should consider reducing their exposure (to SRIPIPES and IEX) and diversifying their portfolios.
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