250.85 -3.06 (-1.22%) Sell

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

13 min read

SARDA ENERGY & MIN LTD was among the worst performers on Wednesday. It delivered -1.22% to close at 250.85. On a day when the overall market breadth was 70%, it closed higher than 54% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

[Themes containing SARDAEN]

SARDAEN is currently in a bearish trend. The current bearish signal has generated a profit of +11.91% for investors in the last three months.


SARDAEN has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 26 Feb, 2016 to 15 Jan, 2018. Over the last 3 years and 1 month, SARDAEN outperformed the NIFTY-50 index on 45% days. Which indicates that on days SARDAEN outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

SARDAEN returned losses on 61% days in the last three months. During this time, it delivered on average -0.18% per day. It delivered it's worst daily return of -6.69%, during this period, on Thursday, 22 Nov, 2018. The longest stort-term trend during this period was 9 losing days, which started on 14 Nov, 2018 and ended on 27 Nov, 2018. This bearish trend lost -15.04% of investor capital.

The last 12 months saw SARDAEN's investors making profits in 3 months and incurring losses in 9 months. SARDAEN was less consistent in delivering monthly returs than NIFTY-50 index. SARDAEN was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -20.43% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SARDAEN had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Sep 2018 to Jan 2019) during which period it delivered -45.1%. It is interesting to note that both SARDAEN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Try not to become a man of success. Rather become a man of value.
-- Albert Einstein

SARDAEN is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in SARDAEN's volatility from 12 Dec, 2018 to 15 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 SARDAEN has significant negative skewness in it's return distribution. This indicates that SARDAEN is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SARDAEN you may find it interesting to know that BAJFINANCE, TORNTPHARM and BRITANNIA are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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