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

SURYALAKSHMI COT MIL LTD has destroyed investor wealth on Wednesday. It fell by -1.35% to close at 40.3. On a day when the overall market breadth was 70%, it closed higher than 20% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

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Buy-and-Hold investors in SURYALAXMI experienced a maximum drawdown of -9.74% over the last three months. It increased by +5.77% during this bullish trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

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SURYALAXMI has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 20 Jul, 2016 to 28 Aug, 2018. Over the last 3 years and 1 month, SURYALAXMI underperformed the NIFTY-50 index on 57% days.

During the last three months SURYALAXMI delivered losses on 55% days. However, it still managed to end this period in a profit. It's best return during this period (of +7.6%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -4.93%) was on Friday, 16 Nov, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +3.81%) started on 7 Dec, 2018 and went on till 12 Dec, 2018 while the bearish trend (which returned -8.09%) started on 18 Jan, 2019 and went on till 23 Jan, 2019.

During the last year SURYALAXMI had 3 profitable months and 9 loss making months. SURYALAXMI returned profits in fewer months than NIFTY-50 index. SURYALAXMI was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -20.0% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SURYALAXMI had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -61.51%. It is interesting to note that both SURYALAXMI and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Buy when everyone else is selling and hold until everyone else is buying. That's not just a catchy slogan. It's the very essence of successful investing.
-- J. Paul Getty

SURYALAXMI is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in SURYALAXMI's volatility from 1 Nov, 2018 to 16 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 SURYALAXMI has significant negative skewness in it's return distribution. This indicates that SURYALAXMI is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in SURYALAXMI you may find it interesting to know that ~MUTHOOTGRP, ~CHEMICALS and NIFTY-GS-15YRPLUS have all shown remarkable performance and qualify to be on every investor's watchlist.