282.25 -5.3 (-1.88%) Buy

Don't consider buying SAKSOFT now, it is risky at the moment

13 min read

SAKSOFT LIMITED was among the worst performers today. It lost -1.88% to close at 282.25. It's recent 5 day performance has been +1.37%, -0.73%, +2.18%, -1.88% and +0.81%.

[Themes containing SAKSOFT]

SAKSOFT showed a strong up trend over the last 3 months. During this period SAKSOFT returned +15.96% and saw a maximum drawdown of -10.78%. There were 2 long signals during this period that returned a cumulative of +8.73% to investors.


SAKSOFT has been underperforming the NIFTY-50 index in recent time, after having outperformed till 12 Jan, 2016. Over the last 3 years and 1 month, SAKSOFT underperformed the NIFTY-50 index on 55% days.

During the last three months SAKSOFT delivered losses on 58% days. However, it still managed to end this period in a profit. It's best return during this period (of +20.0%) was on Monday, 12 Nov, 2018. While it's worst loss in the same period (of -4.04%) was on Tuesday, 13 Nov, 2018. There was initially a bearish trend during this period which started on 22 Oct, 2018 and went on till 25 Oct, 2018. The trend delivered -6.84% losses to investors. This was followed by a bullish trend that started on 27 Dec, 2018 and ended on 1 Jan, 2019. This bullish trend delivered +9.43% to investors.

SAKSOFT had 6 profitable and 6 loss making months over the last year. SAKSOFT was profitable in more months than NIFTY-50 index. SAKSOFT significantly outperformed NIFTY-50 index in Aug 2018, when it returned +34.57% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SAKSOFT and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both SAKSOFT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"I believe that through knowledge and discipline, financial peace is possible for all of us.

SAKSOFT is becoming less 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 SAKSOFT's volatility from 19 Oct, 2018 to 26 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 SAKSOFT has significant negative skewness in it's return distribution. This indicates that SAKSOFT is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SAKSOFT), three instruments that deserve special mention are RESPONIND, LTTS and LTI. They have all outperformed the market and must be closely watched for investment opportunities.

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