511.8 -6.52 (-1.27%) Buy

VIPIND investors not showing any loss of confidence as it pauses to catch its breath

13 min read

VIP INDUSTRIES LTD showed weakness today. It lost -1.27% to close at 511.8. It's recent 5 day performance has been +1.24%, +0.48%, +3.76%, -2.75% and +1.19%.

[Themes containing VIPIND]

VIPIND showed a strong up trend over the last 3 months. During this period VIPIND grew by +19.13% and saw a maximum drawdown of -9.27%. There were 3 long signals during this period that returned a cumulative of +3.84% to investors.


VIPIND has been underperforming the NIFTY-50 index in recent time, after having outperformed till 27 Aug, 2018. Over the last 3 years and 1 month, VIPIND outperformed the NIFTY-50 index on 49% days. Which indicates that on days VIPIND 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 VIPIND delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +7.72%) was on Tuesday, 27 Nov, 2018. While it's worst loss in the same period (of -5.1%) was on Monday, 10 Dec, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 2 Nov, 2018. The bullish trend returned +18.45% to investors. This was followed by a bearish trend that started on 19 Dec, 2018 and ended on 24 Dec, 2018. This bearish trend lost -4.09% of investor capital.

VIPIND had 7 profitable and 5 loss making months over the last year. VIPIND was profitable in more months than NIFTY-50 index. VIPIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -33.72% compared to -6.42% returned by NIFTY-50 index in Sep 2018. VIPIND 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 +76.2%. It is interesting to note that both VIPIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Success is walking from failure to failure with no loss of enthusiasm.
-- Winston Churchill

VIPIND 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 VIPIND's volatility from 22 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 VIPIND has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in VIPIND), two small cap instruments that deserve special mention are NIITTECH and VINATIORGA. They have significantly outperformed the overall market.

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