Joy for RELIANCE investors as it ranks better than it's peers but, has not managed to breakout

RELIANCE INDUSTRIES LTD ranked better than it's peers today. It delivered +2.0% to close at 1150.0. During the last week it delivered +4.6% and saw a maximum drawdown of -0.24% before bouncing back.

[Themes containing RELIANCE]

Buy-and-Hold investors in RELIANCE experienced a maximum drawdown of -21.85% over the last three months. It delivered -6.88% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

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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 11 months, RELIANCE outperformed the NIFTY-50 index on 51% days.

During the last three months RELIANCE delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +5.77%) was on Monday, 8 Oct, 2018. While it's worst loss in the same period (of -6.87%) was on Thursday, 4 Oct, 2018. The longest stort-term trends during this period were 6 profitable and losing days. The bullish trend (which returned +6.64%) started on 20 Aug, 2018 and went on till 28 Aug, 2018 while the bearish trend (which returned -11.95%) started on 17 Oct, 2018 and went on till 25 Oct, 2018.

The last 12 months saw RELIANCE's investors making profits in 7 months and incurring losses in 5 months. During the last year, RELIANCE delivered profits in more months than NIFTY-50 index. 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 4 straight months (from Jun 2018 to Sep 2018) during which period it delivered +35.7%. 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 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 RELIANCE's volatility from 27 Aug, 2018 to 8 Oct, 2018. While there was a significant surge in the NIFTY-50 index's volatility from 21 Aug, 2018 to 8 Oct, 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 'Married Put' 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 ~AUTOCOMP has delivered similar performance as RELIANCE and can be considered as an alternative investment candidate (to RELIANCE).