37.8 -1.67 (-4.42%) Buy

SYNDIBANK investors herd to book profits while the going is good

13 min read

SYNDICATE BANK was among the worst performers on Friday. It returned -4.42% to close at 37.8. It is currently trading -54% below it's 52 week high of 82.3.

[Themes containing SYNDIBANK]

SYNDIBANK is currently in a up trend. The previous long signal in SYNDIBANK has not been profitable for investors in general. If you are invested in SYNDIBANK at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


SYNDIBANK has been underperforming the NIFTY-50 index in recent time, after having outperformed till 1 Jan, 2016. Over the last 3 years and 1 month, SYNDIBANK underperformed the NIFTY-50 index on 55% days.

SYNDIBANK returned losses on 54% days in the last three months. During this time, it delivered on average +0.3% per day. It delivered it's best daily return of +7.64%, during this period, on Wednesday, 12 Dec, 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 +3.89% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -12.56% of investor capital.

On monthly basis, SYNDIBANK delivered losses in more months over the last year, than profits. SYNDIBANK delivered profits less regularly than NIFTY-50 index. SYNDIBANK was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -23.33% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SYNDIBANK 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 -55.0%. It is interesting to note that both SYNDIBANK and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Stay on top of your finances. Don't leave that up to others.

SYNDIBANK 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 SYNDIBANK's volatility from 31 Oct, 2018 to 28 Nov, 2018. 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 SYNDIBANK has significant negative skewness in it's return distribution. This indicates that SYNDIBANK is very risky for short-term investment and can significantly underperform for long durations.

Investors trading in SYNDIBANK derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

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

On a general note (since you are interested in SYNDIBANK), three mid cap instruments that deserve special mention are CUB, LTTS and HATSUN. They have all outperformed the market and must be closely watched for investment opportunities.

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