49.7 -0.2 (-0.4%) Sell

Search for alternative investments is on for SAIL investors as it shows weakness

13 min read

STEEL AUTHORITY OF INDIA ranked worse than it's peers today. It delivered -0.4% to close at 49.7. During the last week it delivered -1.68% and saw a maximum drawdown of -2.64% before bouncing back.

[Themes containing SAIL]

SAIL is currently in a bearish trend. Over the last three months 3 bearish signals have generated a profit of +11.43% for investors.


SAIL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 15 Jan, 2018 to 18 Jan, 2019. One must note that SAIL is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, SAIL underperformed the NIFTY-50 index on 50% days. Which indicates that on days SAIL underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

SAIL returned losses on 62% days in the last three months. During this time, it delivered on average -0.41% per day. It delivered it's best daily return of +6.12%, during this period, on Friday, 28 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 20 Nov, 2018 and ended on 29 Nov, 2018. This bearish trend lost -15.84% of investor capital.

The last 12 months saw SAIL's investors making profits in 4 months and incurring losses in 8 months. SAIL was less consistent in delivering monthly returs than NIFTY-50 index. SAIL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -15.63% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SAIL had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -35.32%.

The stock market is filled with individuals who know the price of everything, but the value of nothing.
-- Phillip Fisher

SAIL 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 fall in SAIL's volatility from 5 Nov, 2018 to 18 Jan, 2019. 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 SAIL has significant negative skewness in it's return distribution. This indicates that SAIL is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in SAIL derivatives at this moment can consider 'Married Call' options strategy to receive better risk-adjusted returns.

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

Based on your interest in SAIL you may find it interesting to know that ASTRAZEN and IGARASHI are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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