Battery THEME

989.219 +2.55 (+0.26%) Sell

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BATTERY THEME investors looking to cut their losses short

14 min read

Battery delivered lacklustre performance on Friday. It surged by +0.26% to close at 989.219. On a day when the overall market breadth was 71%, it closed higher than 31% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.13%.

[Theme constituents]

Buy-and-Hold investors in ~BATTERY experienced a maximum drawdown of -12.62% over the last three months. It fell by -9.24% 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. The net profit from Short signals was +6.35%.


~BATTERY has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 1 Nov, 2016 to 28 Sep, 2018. Over the last 2 years 11 months and 13 days, ~BATTERY underperformed the NIFTY-50 index on 50% days. Which indicates that on days ~BATTERY underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

~BATTERY returned losses on 62% days in the last three months. During this time, it delivered on average -0.15% per day. It delivered it's best daily return of +4.43%, during this period, on Friday, 12 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 18 Sep, 2018 and ended on 25 Sep, 2018. This bearish trend lost -6.07% of investor capital.

During the last year ~BATTERY had 4 profitable months and 8 loss making months. ~BATTERY returned profits in fewer months than NIFTY-50 index. ~BATTERY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -13.86% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~BATTERY had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Jan 2018 to Jun 2018) during which period it delivered -20.82%. It is interesting to note that both ~BATTERY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Greed is not a financial issue. It's a heart issue.
-- Andy Stanley

~BATTERY is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in ~BATTERY's volatility from 12 Oct, 2018 to 30 Nov, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ~BATTERY has significant negative skewness in it's return distribution. This indicates that ~BATTERY is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ~BATTERY you may find it interesting to know that HATSUN, LTTS and LTI are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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