1150.0 +23.05 (+2.0%) Buy

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

14 min read

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.


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).

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