R SYS INTERNATIONAL LTD

52.05 -0.5 (-0.95%) Buy

RSYSTEMS investors check their stop-losses as it underperforms

13 min read

R SYS INTERNATIONAL LTD trailed the broader market on Friday. It lost -0.95% to close at 52.05. On a day when the overall market breadth was 71%, it closed higher than 53% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing RSYSTEMS]

RSYSTEMS is currently in a up trend. The current bullish signal has generated a profit of +16.31% for RSYSTEMS's investors in the last three months.

Trend

RSYSTEMS has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, RSYSTEMS underperformed the NIFTY-50 index on 55% days.

RSYSTEMS returned losses on 54% days in the last three months. During this time, it delivered on average +0.51% per day. It delivered it's best daily return of +15.93%, during this period, on Wednesday, 31 Oct, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -6.02% losses to investors. This was followed by a bullish trend that started on 25 Oct, 2018 and ended on 5 Nov, 2018. This bullish trend delivered +30.75% to investors.

RSYSTEMS had 7 profitable and 5 loss making months over the last year. RSYSTEMS was profitable in more months than NIFTY-50 index. RSYSTEMS significantly outperformed NIFTY-50 index in Aug 2018, when it returned +23.95% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. RSYSTEMS had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered +30.32%. It is interesting to note that both RSYSTEMS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

RSYSTEMS is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in RSYSTEMS's volatility from 31 Oct, 2018 to 27 Dec, 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 RSYSTEMS has significant negative skewness in it's return distribution. This indicates that RSYSTEMS is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in RSYSTEMS), three instruments that deserve special mention are BRITANNIA, NIFTY-GS-15YRPLUS and ~CHEMICALS. They have all outperformed the market and must be closely watched for investment opportunities.

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