3.65 -0.14 (-3.95%) Sell

PUNJLLOYD is a falling knife, continues to bleed every investor trying to catch it

13 min read

PUNJ LLOYD LIMITED was among the worst performers on Tuesday. It fell by -3.95% to close at 3.65. On a day when the overall market breadth was 70%, it closed higher than 10% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing PUNJLLOYD]

PUNJLLOYD is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +51.73% for investors.


PUNJLLOYD 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 21 Jan, 2019. Over the last 3 years and 1 month, PUNJLLOYD underperformed the NIFTY-50 index on 59% days.

During the last three months PUNJLLOYD was mostly loss making and delivered on average -1.29% per day. It's best return during this period (of +8.98%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -19.33%) was on Thursday, 6 Dec, 2018. The longest stort-term trend during this period was 9 losing days, which started on 20 Nov, 2018 and ended on 3 Dec, 2018. This bearish trend lost -32.01% of investor capital.

During the last year PUNJLLOYD had 2 profitable months and 10 loss making months. PUNJLLOYD returned profits in fewer months than NIFTY-50 index. PUNJLLOYD was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Dec 2018, returned -39.57% compared to -6.42% returned by NIFTY-50 index in Sep 2018. PUNJLLOYD had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Aug 2018 to Jan 2019) during which period it delivered -116.93%. It is interesting to note that both PUNJLLOYD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.
-- Peter Lynch.

PUNJLLOYD 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 PUNJLLOYD's volatility from 25 Oct, 2018 to 13 Nov, 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 PUNJLLOYD has significant negative skewness in it's return distribution. This indicates that PUNJLLOYD is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in PUNJLLOYD), RESPONIND has performed really well this year and deserves to be closely tracked for investment opportunities.

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