VIDEOCON INDUSTRIES LIMIT

2.9 -0.05 (-1.69%) Sell

Are you evaluating investing in VIDEOIND? Avoid as it has destroyed investor wealth

17 min read

VIDEOCON INDUSTRIES LIMIT has destroyed investor wealth on Wednesday. It lost -1.69% to close at 2.9. On a day when the overall market breadth was 70%, it closed higher than 5% of the market. In comparison, the benchmark NIFTY-50 index closed today at -0.0084%.

[Themes containing VIDEOIND]

VIDEOIND showed a down trend over the last 3 months. During this period VIDEOIND lost -4.92% and saw a maximum drawdown of -23.68%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in VIDEOIND till volatility reduces and a clear trend emerges.

Trend

VIDEOIND has been underperforming the NIFTY-50 index in recent time, after having outperformed till 15 Jan, 2016. Over the last 3 years and 1 month, VIDEOIND underperformed the NIFTY-50 index on 54% days.

VIDEOIND returned losses on 61% days in the last three months. During this time, it delivered on average -0.03% per day. It delivered it's best daily return of +5.0%, during this period, on Thursday, 1 Nov, 2018. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +19.78% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 7 Dec, 2018. This bearish trend lost -16.83% of investor capital.

VIDEOIND had 2 profitable and 10 loss making months over the last year. During the last year, VIDEOIND underperformed NIFTY-50 index on monthly return basis. VIDEOIND significantly outperformed NIFTY-50 index in Nov 2018, when it returned +26.67% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. VIDEOIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 7 straight months (from Feb 2018 to Aug 2018) during which period it delivered -115.17%.

You must gain control over your money or the lack of it will forever control you.
-- Dave Ramsey

VIDEOIND 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 surge in VIDEOIND's volatility from 26 Oct, 2018 to 16 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 VIDEOIND has positive skewness in it's return distribution. This indicates that investors can expect VIDEOIND to make attempts to recover from drawdowns quickly. Which makes VIDEOIND a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

On a general note (since you are interested in VIDEOIND), two instruments that have delivered similar performance as VIDEOIND are GMDCLTD and IDBI. They are suitable as good alternative investment candidates that can diversify your portfolio.

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