21.95 -1.0 (-4.57%) Sell

SALORAINTL is a falling knife, continues to bleed every investor trying to catch it

13 min read

SALORA INTERNATIONAL LTD was among the worst performers on Wednesday. It fell by -4.57% to close at 21.95. On a day when the overall market breadth was 70%, it closed higher than 39% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0036%.

[Themes containing SALORAINTL]

Buy-and-Hold investors in SALORAINTL experienced a maximum drawdown of -26.09% over the last three months. It fell by -22.98% during this strong 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. The net profit from Short signals was +4.57%.


SALORAINTL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 30 Nov, 2016 to 3 Aug, 2018. Over the last 3 years and 8 days, SALORAINTL underperformed the NIFTY-50 index on 56% days.

SALORAINTL returned losses on 69% days in the last three months. During this time, it delivered on average -0.74% per day. It delivered it's best daily return of +5.0%, during this period, on Monday, 3 Dec, 2018. The longest stort-term trend during this period was 4 losing days, which started on 27 Dec, 2018 and ended on 9 Jan, 2019. This bearish trend lost -17.32% of investor capital.

During the last year SALORAINTL had 3 profitable months and 9 loss making months. SALORAINTL returned profits in fewer months than NIFTY-50 index. SALORAINTL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -32.68% compared to -7.36% returned by NIFTY-50 index in Oct 2018. SALORAINTL had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Oct 2018 to Jan 2019) during which period it delivered -36.32%.

Financial security and independence are like a three-legged stool resting on savings, insurance and investments.
-- Brian Tracy

SALORAINTL 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 SALORAINTL's volatility from 25 Oct, 2018 to 26 Nov, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 29 Oct, 2018 to 20 Dec, 2018.

Advanced/professional short-term investors should note that SALORAINTL has significant negative skewness in it's return distribution. This indicates that SALORAINTL is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SALORAINTL you may find it interesting to know that HINDUNILVR and BAJFINANCE are both large caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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