Stop-loss on the minds of SUVEN investors as it was among the worst performers
14 Dec, 201813 min read
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SUVEN LIFE SCIENCES LTD significantly underperformed on Friday. It lost -1.67% to close at 232.45. On a day when the overall market breadth was 71%, it closed higher than 69% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.13%.
SUVEN is currently in a down trend. The current bearish signal has generated a profit of +4.81% for investors in the last three months.
SUVEN has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 2 years 11 months and 13 days, SUVEN underperformed the NIFTY-50 index on 56% days.
SUVEN returned losses on 64% days in the last three months. During this time, it delivered on average -0.46% per day. It delivered it's best daily return of +7.14%, during this period, on Wednesday, 10 Oct, 2018. There was initially a bullish trend during this period which started on 5 Nov, 2018 and went on till 9 Nov, 2018. The bullish trend returned +7.69% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -8.24% of investor capital.
SUVEN had 6 profitable and 6 loss making months over the last year. SUVEN was profitable in more months than NIFTY-50 index. SUVEN significantly outperformed NIFTY-50 index in Aug 2018, when it returned +21.43% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. SUVEN had a longer winning streak of profitable months than NIFTY-50 index. It went up in 5 straight months (from Apr 2018 to Aug 2018) during which period it delivered +52.81%. It is interesting to note that both SUVEN and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
I hate weekends because there is no stock market.
-- Rene Rivkin
SUVEN 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 SUVEN's volatility from 21 Sep, 2018 to 7 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that SUVEN has significant negative skewness in it's return distribution. This indicates that SUVEN is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than SUVEN. Therefore, NIFTY-50 must receive a lower allocation than SUVEN in your portfolio. NIFTY-50 index usually has shorter drawdown period than SUVEN.
On a general note (since you are interested in SUVEN), HINDUNILVR is a large cap that deserves to be closely tracked for investment opportunities.
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