49.65 -0.4 (-0.8%) Sell

Search for alternative investments is on for SUNFLAG investors as it underperforms

13 min read

SUNFLAG IRON AND STEEL CO ranked worse than it's peers on Wednesday. It fell by -0.8% to close at 49.65. On a day when the overall market breadth was 70%, it closed higher than 65% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

[Themes containing SUNFLAG]

SUNFLAG is currently in a bearish trend. The current bearish signal has generated a profit of +14.1% for investors in the last three months.


SUNFLAG has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 21 Mar, 2016 to 28 Feb, 2018. Over the last 3 years and 1 month, SUNFLAG outperformed the NIFTY-50 index on 46% days. Which indicates that on days SUNFLAG outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

SUNFLAG returned losses on 61% days in the last three months. During this time, it delivered on average -0.22% per day. It delivered it's best daily return of +7.33%, during this period, on Wednesday, 12 Dec, 2018. The longest stort-term trend during this period was 10 losing days, which started on 1 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -11.31% of investor capital.

During the last year SUNFLAG had 6 profitable months and 6 loss making months. SUNFLAG returned profits in more months than NIFTY-50 index. SUNFLAG was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -23.16% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SUNFLAG and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both SUNFLAG and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

SUNFLAG 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 SUNFLAG's volatility from 2 Nov, 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 SUNFLAG has significant negative skewness in it's return distribution. This indicates that SUNFLAG is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SUNFLAG you may find it interesting to know that RESPONIND and NIITTECH are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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