427.7 -0.55 (-0.13%) Sell

VISAKAIND continues its fall as more investors loose confidence

13 min read

VISAKA INDUSTRIES LIMITED underperformed today. It delivered -0.13% to close at 427.7. It's recent 5 day performance has been -0.58%, +0.37%, +1.68%, -3.51% and +0.53%.

[Themes containing VISAKAIND]

VISAKAIND is currently in a bearish trend. Over the last three months trading short signals has not been a profitable strategy for VISAKAIND's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -2.47%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to VISAKAIND.


VISAKAIND has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 17 Feb, 2016 to 15 Jan, 2018. Over the last 3 years and 1 month, VISAKAIND outperformed the NIFTY-50 index on 46% days. Which indicates that on days VISAKAIND outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

VISAKAIND returned losses on 54% days in the last three months. During this time, it delivered on average -0.0% per day. It delivered it's best daily return of +10.01%, during this period, on Thursday, 13 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 30 Nov, 2018 and ended on 10 Dec, 2018. This bearish trend lost -16.46% of investor capital.

The last 12 months saw VISAKAIND's investors making profits in 3 months and incurring losses in 9 months. VISAKAIND was less consistent in delivering monthly returs than NIFTY-50 index. VISAKAIND was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -22.98% compared to -6.42% returned by NIFTY-50 index in Sep 2018. VISAKAIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Nov 2018 to Jan 2019) during which period it delivered -10.7%. It is interesting to note that both VISAKAIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
-- T.T. Munger

VISAKAIND is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in VISAKAIND's volatility from 22 Oct, 2018 to 7 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 VISAKAIND has significant negative skewness in it's return distribution. This indicates that VISAKAIND is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in VISAKAIND you may find it interesting to know that ~CHEMICALS, BAJFINANCE and NIFTY-GS-15YRPLUS have all shown remarkable performance and qualify to be on every investor's watchlist.

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