SUNIL HITECH ENGR. LTD

1.25 -0.05 (-3.85%) Sell

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

13 min read

SUNIL HITECH ENGR. LTD has destroyed investor wealth today. It lost -3.85% to close at 1.25. During the last week it lost -10.71% and saw a maximum drawdown of -10.71%.

[Themes containing SUNILHITEC]

SUNILHITEC is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +27.31% for investors.

Trend

SUNILHITEC has been underperforming the NIFTY-50 index in recent time, after having outperformed till 20 Oct, 2016. Over the last 3 years and 1 month, SUNILHITEC underperformed the NIFTY-50 index on 57% days.

SUNILHITEC 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 best daily return of +5.0%, during this period, on Monday, 12 Nov, 2018. There was initially a bullish trend during this period which started on 24 Oct, 2018 and went on till 19 Nov, 2018. The bullish trend returned +59.46% to investors. This was followed by a bearish trend that started on 6 Dec, 2018 and ended on 14 Dec, 2018. This bearish trend lost -24.64% of investor capital.

SUNILHITEC had 2 profitable and 10 loss making months over the last year. During the last year, SUNILHITEC underperformed NIFTY-50 index on monthly return basis. SUNILHITEC was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -47.46% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SUNILHITEC 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 -120.83%. It is interesting to note that both SUNILHITEC and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Infinite growth of material consumption in a finite world is an impossibility.

SUNILHITEC 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 surge in SUNILHITEC's volatility from 24 Oct, 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 SUNILHITEC has significant negative skewness in it's return distribution. This indicates that SUNILHITEC is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SUNILHITEC), three instruments that deserve special mention are BRITANNIA, BAJFINANCE and ~MUTHOOTGRP. They have all outperformed the market and must be closely watched for investment opportunities.

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