3.0 0.0 (0.0%) Sell

Profit booking on the minds of WSI investors as it performed better than the broader market

13 min read

W.S.INDUSTRIES (I) LTD. managed to marginally outperform the broader market today. It lost 0.0% to close at 3.0. It's recent 5 day performance has been 0.0%, 0.0%, 0.0%, -4.76% and 0.0%.

[Themes containing WSI]

WSI is currently in a down trend. The current bearish signal has generated a profit of +25.0% for investors in the last three months.


WSI has been underperforming the NIFTY-50 index in recent time, after having outperformed till 22 Aug, 2016. Over the last 3 years and 1 month, WSI underperformed the NIFTY-50 index on 56% days.

WSI returned losses on 86% days in the last three months. During this time, it delivered on average -0.65% per day. It delivered it's worst daily return of -5.0%, during this period, on Friday, 26 Oct, 2018. There was initially a bearish trend during this period which started on 19 Nov, 2018 and went on till 21 Nov, 2018. The trend delivered -13.06% losses to investors. This was followed by a bullish trend that started on 22 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +4.29% to investors.

WSI had 3 profitable and 9 loss making months over the last year. During the last year, WSI underperformed NIFTY-50 index on monthly return basis. WSI was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Jun 2018, returned -27.46% compared to -6.88% returned by NIFTY-50 index in Oct 2018. WSI 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 -22.65%. It is interesting to note that both WSI and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Too many people spend money they earned..to buy things they don't want..to impress people that they don't like.
-- Will Rogers

WSI 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 WSI's volatility from 14 Nov, 2018 to 2 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 29 Oct, 2018 to 4 Dec, 2018.

Advanced/professional short-term investors should note that WSI 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 WSI. Therefore, NIFTY-50 must receive a lower allocation than WSI in your portfolio. NIFTY-50 index usually has shorter drawdown period than WSI.

On a general note (since you are interested in WSI), ~MUTHOOTGRP has performed really well and deserves to be closely tracked for investment opportunities.

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