27.8 -0.35 (-1.24%) Sell

Stop-loss on the minds of VIPCLOTHNG investors as it significantly underperforms

13 min read

VIP CLOTHING LIMITED significantly underperformed on Friday. It lost -1.24% to close at 27.8. It is currently trading -71% below it's 52 week high of 98.05.

VIPCLOTHNG is currently in a down trend. The current bearish signal has generated a profit of +42.5% for investors in the last three months.


VIPCLOTHNG has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2018. Over the last 2 years 11 months and 13 days, VIPCLOTHNG underperformed the NIFTY-50 index on 58% days.

During the last three months VIPCLOTHNG was mostly loss making and delivered on average -1.01% per day. It's best return during this period (of +7.97%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -11.83%) was on Friday, 28 Sep, 2018. There was initially a bearish trend during this period which started on 18 Sep, 2018 and went on till 1 Oct, 2018. The trend delivered -35.43% losses to investors. This was followed by a bullish trend that started on 10 Oct, 2018 and ended on 16 Oct, 2018. This bullish trend delivered +23.39% to investors.

VIPCLOTHNG had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of VIPCLOTHNG and NIFTY-50 index were the same. VIPCLOTHNG was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -35.42% compared to -6.42% returned by NIFTY-50 index in Sep 2018. VIPCLOTHNG and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both VIPCLOTHNG 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.

VIPCLOTHNG is becoming more 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 VIPCLOTHNG's volatility from 17 Sep, 2018 to 21 Sep, 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 VIPCLOTHNG has significant negative skewness in it's return distribution. This indicates that VIPCLOTHNG is very risky for short-term investment and can significantly underperform for long durations.

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

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

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