It Services THEME

2237.24 +14.85 (+0.66%) Buy

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ITSERVICES THEME continues to mint money for it's investors

15 min read

IT Services was among the best performers on Tuesday. It returned +0.66% to close at 2237.24. On a day when the overall market breadth was 71%, it closed higher than 69% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.19%.

[Theme constituents]

~ITSERVICES is currently in a up trend. The previous long signal in ~ITSERVICES has not been profitable for investors in general. If you are invested in ~ITSERVICES at current levels please make sure that your allocation is limited and that your portfolio is well diversified.

Trend

~ITSERVICES has been outperforming the NIFTY-50 index in recent time. Over the last 2 years and 12 months, ~ITSERVICES outperformed the NIFTY-50 index on 51% days.

During the last three months ~ITSERVICES delivered losses on 57% days. However, it still managed to end this period in a profit. It's best return during this period (of +13.06%) was on Monday, 15 Oct, 2018. While it's worst loss in the same period (of -3.52%) was on Thursday, 11 Oct, 2018. There was initially a bearish trend during this period which started on 14 Nov, 2018 and went on till 27 Nov, 2018. The trend delivered -5.88% losses to investors. This was followed by a bullish trend that started on 28 Nov, 2018 and ended on 4 Dec, 2018. This bullish trend delivered +4.25% to investors.

On monthly basis, ~ITSERVICES delivered profits in more months over the last year, than losses. ~ITSERVICES delivered profits in more months than NIFTY-50 index. ~ITSERVICES significantly outperformed NIFTY-50 index in Jan 2018, when it returned +21.65% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ~ITSERVICES had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Jun 2018 to Aug 2018) during which period it delivered +11.29%. It is interesting to note that both ~ITSERVICES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Opportunity is missed by most people because it is dressed in overalls and looks like work.
-- Thomas Edison

~ITSERVICES 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 surge in ~ITSERVICES's volatility from 19 Sep, 2018 to 15 Oct, 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 ~ITSERVICES 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 ~ITSERVICES. Therefore, NIFTY-50 must receive a lower allocation than ~ITSERVICES in your portfolio. NIFTY-50 index usually has shorter drawdown period than ~ITSERVICES.

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

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