Home Appliances THEME

2106.62 +10.38 (+0.49%) Buy

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Profit booking on the minds of HOMEAPPLIANCES THEME investors as it manages to marginally outperform broader market

13 min read

Home Appliances managed to marginally outperform the broader market on Tuesday. It gained +0.49% to close at 2106.62. It is currently trading -18% below it's 52 week high of 2596.81.

[Theme constituents]

~HOMEAPPLIANCES is currently in a up trend. Over the last three months 2 bullish signals in ~HOMEAPPLIANCES have generated a profit of +3.67% for investors.

Trend

~HOMEAPPLIANCES has been outperforming the NIFTY-50 index in recent time. Over the last 2 years and 12 months, ~HOMEAPPLIANCES outperformed the NIFTY-50 index on 54% days.

~HOMEAPPLIANCES was profitable on 51% days in the last three months. During this time, it delivered on average +0.05% per day. It delivered it's best daily return of +5.38%, during this period, on Friday, 12 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 1 Oct, 2018. The trend delivered -10.48% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 7 Nov, 2018. This bullish trend delivered +9.26% to investors.

~HOMEAPPLIANCES had 6 profitable and 6 loss making months over the last year. During the last year, number of profitable months of ~HOMEAPPLIANCES and NIFTY-50 index were the same. ~HOMEAPPLIANCES was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -17.47% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~HOMEAPPLIANCES had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +13.27%. It is interesting to note that both ~HOMEAPPLIANCES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.

~HOMEAPPLIANCES is becoming more 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 ~HOMEAPPLIANCES's volatility from 12 Oct, 2018 to 4 Dec, 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 ~HOMEAPPLIANCES 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.

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

On a general note (since you are interested in ~HOMEAPPLIANCES), three instruments that deserve special mention are BAJFINANCE, ~MKTCAP201TO250 and ~CHEMICALS. They have all outperformed the market and must be closely watched for investment opportunities.

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