SOMANY CERAMICS LIMITED

358.7 -8.26 (-2.3%) Buy

SOMANYCERA investors herd to book profits while the going is good

13 min read

SOMANY CERAMICS LIMITED ranked among the worst performers on Friday. It lost -2.3% to close at 358.7. It is currently trading -59% below it's 52 week high of 886.1.

[Themes containing SOMANYCERA]

SOMANYCERA is currently in a up trend. The previous long signal in SOMANYCERA has not been profitable for investors in general. If you are invested in SOMANYCERA at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

SOMANYCERA has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, SOMANYCERA underperformed the NIFTY-50 index on 51% days.

SOMANYCERA was profitable on 50% days in the last three months. During this time, it delivered on average +0.05% per day. It delivered it's best daily return of +6.72%, during this period, on Wednesday, 12 Dec, 2018. There was initially a bearish trend during this period which started on 9 Nov, 2018 and went on till 16 Nov, 2018. The trend delivered -9.02% losses to investors. This was followed by a bullish trend that started on 28 Dec, 2018 and ended on 7 Jan, 2019. This bullish trend delivered +13.33% to investors.

SOMANYCERA had 3 profitable and 9 loss making months over the last year. During the last year, SOMANYCERA underperformed NIFTY-50 index on monthly return basis. SOMANYCERA was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -21.0% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SOMANYCERA had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -36.05%. It is interesting to note that both SOMANYCERA and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down.
-- Warren Edward Buffett

SOMANYCERA 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 SOMANYCERA's volatility from 25 Oct, 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 SOMANYCERA 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 SOMANYCERA. Therefore, NIFTY-50 must receive a lower allocation than SOMANYCERA in your portfolio. NIFTY-50 index usually has shorter drawdown period than SOMANYCERA.

On a general note (since you are interested in SOMANYCERA), BAJFINANCE has performed really well and deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter