Hdfc Group THEME

2060.62 -11.49 (-0.56%) Buy

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HDFCGRP THEME continues it's uptrend, although on a weaker note

13 min read

HDFC Group is looking better than most other alternatives on Tuesday. It returned -0.56% to close at 2060.62. On a day when the overall market breadth was 71%, it closed higher than 66% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.19%.

[Theme constituents]

~HDFCGRP is currently in a up trend. The current bullish signal has generated a profit of +5.82% for ~HDFCGRP's investors in the last three months.


~HDFCGRP has been outperforming the NIFTY-50 index in recent time. Over the last 2 years and 12 months, ~HDFCGRP outperformed the NIFTY-50 index on 52% days.

During the last three months ~HDFCGRP was mostly profitable and delivered on average +0.05% per day. It's best return during this period (of +3.66%) was on Wednesday, 31 Oct, 2018. While it's worst loss in the same period (of -4.86%) was on Monday, 24 Sep, 2018. There was initially a bearish trend during this period which started on 3 Oct, 2018 and went on till 8 Oct, 2018. The trend delivered -7.03% losses to investors. This was followed by a bullish trend that started on 26 Nov, 2018 and ended on 30 Nov, 2018. This bullish trend delivered +6.09% to investors.

On monthly basis, ~HDFCGRP delivered profits and losses in equal number of months. ~HDFCGRP delivered profits less regularly than NIFTY-50 index. ~HDFCGRP significantly outperformed NIFTY-50 index in Jan 2018, when it returned +14.07% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ~HDFCGRP had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Mar 2018 to May 2018) during which period it delivered +12.29%. It is interesting to note that both ~HDFCGRP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"You will never be a greater risk-taker in the markets if you approach life with a completely different attitude.

~HDFCGRP 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 ~HDFCGRP's volatility from 24 Sep, 2018 to 9 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 ~HDFCGRP 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.

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

On a general note (since you are interested in ~HDFCGRP), if you are evaluating ~HDFCGRP as an investment candidate, then you should read about ~MKTCAP201TO250 which has delivered similar performance and can help diversify your portfolio.

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