9.2 -0.65 (-7.07%) Buy

SITINET investors herd to book profits while the going is good

13 min read

SITI NETWORKS LIMITED has destroyed investor wealth today. It returned -7.07% to close at 9.2. It's recent 5 day performance has been -1.98%, +1.51%, -3.86%, -1.43% and +1.45%.

[Themes containing SITINET]

SITINET is currently in a up trend. Over the last three months Buy-and-Hold has been a better strategy (returning +6.36%) for SITINET's investors than trading long signals.


SITINET has been underperforming the NIFTY-50 index in recent time, after having outperformed till 29 Feb, 2016. Over the last 3 years and 1 month, SITINET underperformed the NIFTY-50 index on 55% days.

During the last three months SITINET delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +13.81%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -8.55%) was on Monday, 24 Dec, 2018. There was initially a bullish trend during this period which started on 7 Dec, 2018 and went on till 19 Dec, 2018. The bullish trend returned +15.47% to investors. This was followed by a bearish trend that started on 20 Dec, 2018 and ended on 26 Dec, 2018. This bearish trend lost -16.55% of investor capital.

On monthly basis, SITINET delivered losses in more months over the last year, than profits. SITINET delivered profits less regularly than NIFTY-50 index. SITINET was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -31.56% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SITINET and NIFTY-50 index, both had periods of 2 consecutive profitable months.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

SITINET 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 SITINET's volatility from 1 Nov, 2018 to 16 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 SITINET has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

Based on your interest in SITINET you may find it interesting to know that NIITTECH is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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