WELSPUN INDIA LTD underperformed broader market today. It fell by -1.06% to close at 60.4. It's recent 5 day performance has been -0.73%, -1.76%, +1.79%, -1.05% and +0.97%.
WELSPUNIND is currently in a bullish trend. Over the last three months trading long signals has not been a profitable strategy for WELSPUNIND's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -4.58%). It is therefore better to tread with caution in the current uptrend by limiting your allocation to WELSPUNIND.
WELSPUNIND has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 14 Jun, 2016 to 23 Jul, 2018. Over the last 3 years and 1 month, WELSPUNIND underperformed the NIFTY-50 index on 54% days.
During the last three months WELSPUNIND was mostly loss making and delivered on average -0.06% per day. It's best return during this period (of +4.15%) was on Wednesday, 12 Dec, 2018. While it's worst loss in the same period (of -5.29%) was on Monday, 22 Oct, 2018. The longest stort-term trends during this period were 3 profitable and losing days. The bullish trend (which returned +2.86%) started on 26 Oct, 2018 and went on till 30 Oct, 2018 while the bearish trend (which returned -4.27%) started on 22 Nov, 2018 and went on till 27 Nov, 2018.
During the last year WELSPUNIND had 6 profitable months and 6 loss making months. WELSPUNIND returned profits in more months than NIFTY-50 index. WELSPUNIND significantly outperformed NIFTY-50 index in Aug 2018, when it returned +32.25% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. WELSPUNIND had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Feb 2018 to Apr 2018) during which period it delivered -17.54%. It is interesting to note that both WELSPUNIND and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Glamour is what I sell, it's my stock in trade.
-- Marlene Dietrich
WELSPUNIND 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 WELSPUNIND's volatility from 22 Oct, 2018 to 10 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 WELSPUNIND has positive skewness in it's return distribution. This indicates that investors can expect WELSPUNIND to make attempts to recover from drawdowns quickly. Which makes WELSPUNIND a good candidate for momentum based trading on short-term bullish trends or counter-trends.
NIFTY-50 index has more chance of extreme outcomes than WELSPUNIND. Therefore, NIFTY-50 must receive a lower allocation than WELSPUNIND in your portfolio. NIFTY-50 index usually has shorter drawdown period than WELSPUNIND.
Based on your interest in WELSPUNIND you may find it interesting to know that NIFTY-GS-15YRPLUS has shown remarkable performance and deserves to be on every investors' watchlist.
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