TORRENT POWER LTD

264.95 +3.39 (+1.28%) Buy

TORNTPOWER continues to mint money for it's investors

13 min read

TORNTPOWER was among the best performers today. On a longer term basis, investors in TORRENT POWER LTD made +0.1% per day. Friday's performance of +1.28% was a significant outperformance compared to it's daily average.

[Themes containing TORNTPOWER]

Buy-and-Hold investors in TORNTPOWER experienced a maximum drawdown of -9.34% over the last three months. It returned +12.53% during this strong up trending period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals.

Trend

TORNTPOWER has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, TORNTPOWER outperformed the NIFTY-50 index on 45% days. Which indicates that on days TORNTPOWER outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

During the last three months TORNTPOWER delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +13.17%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.66%) was on Friday, 14 Dec, 2018. There was initially a bullish trend during this period which started on 25 Oct, 2018 and went on till 29 Oct, 2018. The bullish trend returned +6.39% to investors. This was followed by a bearish trend that started on 22 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -3.4% of investor capital.

On monthly basis, TORNTPOWER delivered profits in more months over the last year, than losses. TORNTPOWER delivered profits in more months than NIFTY-50 index. TORNTPOWER was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -16.39% compared to -6.42% returned by NIFTY-50 index in Sep 2018. TORNTPOWER and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both TORNTPOWER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises.
-- Aristotle

TORNTPOWER 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 TORNTPOWER's volatility from 19 Oct, 2018 to 11 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 TORNTPOWER has significant negative skewness in it's return distribution. This indicates that TORNTPOWER is very risky for short-term investment and can significantly underperform for long durations.

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

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

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

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