VISA STEEL LIMITED

8.4 -0.15 (-1.75%) Sell

VISASTEEL is a falling knife, continues to bleed every investor trying to catch it

15 min read

VISA STEEL LIMITED delivered massive losses on Friday. It fell by -1.75% to close at 8.4. On a day when the overall market breadth was 71%, it closed higher than 24% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing VISASTEEL]

Buy-and-Hold investors in VISASTEEL experienced a maximum drawdown of -20.3% over the last three months. It fell by -9.19% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.

Trend

VISASTEEL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 16 May, 2017 to 20 Jul, 2018. Over the last 3 years and 1 month, VISASTEEL underperformed the NIFTY-50 index on 59% days.

During the last three months VISASTEEL was mostly loss making and delivered on average -0.13% per day. It's best return during this period (of +6.83%) was on Tuesday, 11 Dec, 2018. While it's worst loss in the same period (of -3.59%) was on Friday, 7 Dec, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +10.86%) started on 10 Dec, 2018 and went on till 13 Dec, 2018 while the bearish trend (which returned -8.93%) started on 23 Oct, 2018 and went on till 26 Oct, 2018.

During the last year VISASTEEL had 2 profitable months and 10 loss making months. VISASTEEL returned profits in fewer months than NIFTY-50 index. VISASTEEL significantly outperformed NIFTY-50 index in Aug 2018, when it returned +32.26% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. VISASTEEL had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -72.89%. It is interesting to note that both VISASTEEL and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"After two decades of personal finance reporting, I've heard every excuse in the book for not saving money. That said, none of them really hold up - at least over the long term.

VISASTEEL 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 VISASTEEL's volatility from 22 Oct, 2018 to 17 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 VISASTEEL has significant negative skewness in it's return distribution. This indicates that VISASTEEL is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in VISASTEEL you may find it interesting to know that CORALFINAC has delivered similar performance as VISASTEEL and can be considered as an alternative investment candidate (to VISASTEEL).

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