SUNTECK REALTY LIMITED delivered massive losses on Friday. It returned -1.82% to close at 339.2. On a day when the overall market breadth was 71%, it closed higher than 64% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
SUNTECK is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for SUNTECK's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned +1.42%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to SUNTECK.
SUNTECK has been underperforming the NIFTY-50 index in recent time, after having outperformed till 24 Aug, 2018. Over the last 3 years and 1 month, SUNTECK outperformed the NIFTY-50 index on 50% days. Which indicates that on days SUNTECK outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
SUNTECK returned losses on 54% days in the last three months. During this time, it delivered on average +0.04% per day. It delivered it's worst daily return of -6.73%, during this period, on Monday, 22 Oct, 2018. There was initially a bullish trend during this period which started on 14 Nov, 2018 and went on till 20 Nov, 2018. The bullish trend returned +11.04% to investors. This was followed by a bearish trend that started on 8 Jan, 2019 and ended on 14 Jan, 2019. This bearish trend lost -5.31% of investor capital.
On monthly basis, SUNTECK delivered profits and losses in equal number of months. SUNTECK delivered profits in more months than NIFTY-50 index. SUNTECK significantly outperformed NIFTY-50 index in Aug 2018, when it returned +23.73% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SUNTECK and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both SUNTECK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
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SUNTECK 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 SUNTECK's volatility from 22 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 SUNTECK has significant negative skewness in it's return distribution. This indicates that SUNTECK is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SUNTECK. Therefore, NIFTY-50 must receive a lower allocation than SUNTECK in your portfolio. NIFTY-50 index usually has shorter drawdown period than SUNTECK.
On a general note (since you are interested in SUNTECK), three instruments that deserve special mention are ~CHEMICALS, BAJFINANCE and NIFTY-GS-15YRPLUS. They have all outperformed the market and must be closely watched for investment opportunities.
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