SUNDARAM FINANCE LTD

1477.55 +19.3 (+1.31%) Buy

SUNDARMFIN investors looking to book profit as it outperforms

13 min read

SUNDARAM FINANCE LTD ranked among the best performers today. It delivered +1.31% to close at 1477.55. It's recent 5 day performance has been +0.23%, -0.45%, -0.26%, -1.24% and -0.83%.

[Themes containing SUNDARMFIN]

SUNDARMFIN is currently in a bullish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +6.2%) for SUNDARMFIN's investors than trading long signals.

Trend

SUNDARMFIN has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 4 Dec, 2017 to 24 Aug, 2018. Over the last 3 years and 1 month, SUNDARMFIN underperformed the NIFTY-50 index on 53% days.

During the last three months SUNDARMFIN delivered losses on 53% days. However, it still managed to end this period in a profit. It's best return during this period (of +3.95%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -2.88%) was on Monday, 12 Nov, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +5.95%) started on 7 Dec, 2018 and went on till 13 Dec, 2018 while the bearish trend (which returned -5.53%) started on 19 Nov, 2018 and went on till 26 Nov, 2018.

During the last year SUNDARMFIN had 4 profitable months and 8 loss making months. SUNDARMFIN returned profits in fewer months than NIFTY-50 index. SUNDARMFIN was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -14.0% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SUNDARMFIN had a longer winning streak of losing months than NIFTY-50 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -10.08%. It is interesting to note that both SUNDARMFIN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Wealth is like sea-water; the more we drink, the thirstier we become; and the same is true of fame.
-- Arthur Schopenhauer

SUNDARMFIN 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 SUNDARMFIN's volatility from 19 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 SUNDARMFIN has significant negative skewness in it's return distribution. This indicates that SUNDARMFIN is very risky for short-term investment and can significantly underperform for long durations.

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

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

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