RELIANCE INDUSTRIES LTD trailed the broader market today. It delivered -0.12% to close at 1230.6. It's recent 5 day performance has been +1.2%, +0.56%, -0.53%, -0.71% and -2.17%.
RELIANCE is currently in a bullish trend. The current bullish signal has generated a profit of +23.25% for RELIANCE's investors in the last three months.
RELIANCE has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 6 Sep, 2016 to 28 Aug, 2018. Over the last 2 years and 9 months, RELIANCE outperformed the NIFTY-50 index on 52% days.
During the last three months RELIANCE was mostly profitable and delivered on average +0.35% per day. It's best return during this period (of +4.19%) was on Thursday, 12 Jul, 2018. While it's worst loss in the same period (of -2.59%) was on Thursday, 5 Jul, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 17 Aug, 2018 and went on till 28 Aug, 2018. This bullish trend returned +9.48% to investors.
The last 12 months saw RELIANCE's investors making profits in 6 months and incurring losses in 6 months. During the last year, RELIANCE and NIFTY-50 index had the same number of profitable months. RELIANCE significantly outperformed NIFTY-50 index in Jul 2018, when it returned +23.46% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. RELIANCE had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +34.39%. It is interesting to note that both RELIANCE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Buy at the point of maximum pessimism; sell at the point of maximum optimism.
-- Sir John Templeton
RELIANCE is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing increase in volatility. During the last three months, there was a significant surge in RELIANCE's volatility from 25 Jun, 2018 to 12 Jul, 2018. While there was a significant surge in the NIFTY-50 index's volatility from 21 Aug, 2018 to 25 Sep, 2018.
Advanced/professional short-term investors should note that RELIANCE 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 RELIANCE derivatives at this moment can consider 'Calendar Spread' options strategy to receive better risk-adjusted returns.
RELIANCE has more chance of extreme outcomes than the NIFTY-50 index. Therefore, RELIANCE must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than RELIANCE.
Based on your interest in RELIANCE you may find it interesting to know that MINDTREE is a mid cap that has shown remarkable performance and deserves to be on every investors' watchlist.
... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.
All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.
We want to empower investors with all the tools and analysis required by them to make a rational investment decision.If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute