Market Cap 101-150 THEME

1131.52 -0.31 (-0.03%) Buy

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Profit booking on the minds of MKTCAP101TO150 THEME investors as it shows marginal outperformance

15 min read

Market Cap 101-150 is looking better than most other alternatives today. It returned -0.03% to close at 1131.52. During the last week it grew by +4.49% and saw a maximum drawdown of -0.03% before bouncing back.

[Theme constituents]

Buy-and-Hold investors in ~MKTCAP101TO150 experienced a maximum drawdown of -16.52% over the last three months. It returned -8.08% during this down 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 +8.09%.


~MKTCAP101TO150 has been underperforming the NIFTY-50 index in recent time, after having outperformed till 8 Jan, 2018. Over the last 2 years 1 month and 7 day, ~MKTCAP101TO150 underperformed the NIFTY-50 index on 46% days. Which indicates that on days ~MKTCAP101TO150 underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months ~MKTCAP101TO150 was mostly loss making and delivered on average -0.13% per day. It's best return during this period (of +4.2%) was on Wednesday, 10 Oct, 2018. While it's worst loss in the same period (of -3.36%) was on Monday, 24 Sep, 2018. There was initially a bearish trend during this period which started on 18 Sep, 2018 and went on till 25 Sep, 2018. The trend delivered -7.85% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +6.23% to investors.

On monthly basis, ~MKTCAP101TO150 delivered losses in more months over the last year, than profits. ~MKTCAP101TO150 delivered profits less regularly than NIFTY-50 index. ~MKTCAP101TO150 was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -13.76% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~MKTCAP101TO150 had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -8.81%. It is interesting to note that both ~MKTCAP101TO150 and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.
-- Warren Buffett

~MKTCAP101TO150 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 ~MKTCAP101TO150'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 ~MKTCAP101TO150 has significant positive skewness in it's return distribution. This indicates that investors can expect ~MKTCAP101TO150 to recover from drawdowns quickly. Which makes ~MKTCAP101TO150 a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

~MKTCAP101TO150 has more chance of extreme outcomes than the NIFTY-50 index. Therefore, ~MKTCAP101TO150 must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than ~MKTCAP101TO150.

On a general note (since you are interested in ~MKTCAP101TO150), three instruments that deserve special mention are BRITANNIA, ~CHEMICALS and ~MKTCAP201TO250. They have all outperformed the market and must be closely watched for investment opportunities.

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