Market Cap 51-100 THEME

1121.11 +2.1 (+0.19%) Sell

Optimize theme

Don't go profit booking on MKTCAP51TO100 THEME now, it delivered a decent return

15 min read

Market Cap 51-100 managed to marginally outperform the broader market today. It gained +0.19% to close at 1121.11. It's recent 5 day performance has been +0.48%, +1.99%, +1.5%, -1.75% and +0.11%.

[Theme constituents]

~MKTCAP51TO100 showed a down trend over the last 3 months. During this period ~MKTCAP51TO100 returned -6.08% and saw a maximum drawdown of -12.89%. There were 2 short signals during this period that returned a cumulative of +8.8% to investors.


~MKTCAP51TO100 has been underperforming the NIFTY-50 index in recent time, after having outperformed till 5 Jan, 2018. Over the last 1 year and 9 months, ~MKTCAP51TO100 underperformed the NIFTY-50 index on 43% days. Which indicates that on days ~MKTCAP51TO100 underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

~MKTCAP51TO100 was profitable on 51% days in the last three months. During this time, it delivered on average -0.1% per day. It delivered it's best daily return of +3.38%, during this period, on Wednesday, 10 Oct, 2018. There was initially a bearish trend during this period which started on 3 Oct, 2018 and went on till 9 Oct, 2018. The trend delivered -5.95% losses to investors. This was followed by a bullish trend that started on 26 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +8.13% to investors.

On monthly basis, ~MKTCAP51TO100 delivered losses in more months over the last year, than profits. ~MKTCAP51TO100 delivered profits less regularly than NIFTY-50 index. ~MKTCAP51TO100 was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -11.4% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~MKTCAP51TO100 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 -9.97%. It is interesting to note that both ~MKTCAP51TO100 and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Believe you can and you're halfway there.
-- Theodore Roosevelt

~MKTCAP51TO100 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 ~MKTCAP51TO100's volatility from 17 Sep, 2018 to 12 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 ~MKTCAP51TO100 has significant positive skewness in it's return distribution. This indicates that investors can expect ~MKTCAP51TO100 to recover from drawdowns quickly. Which makes ~MKTCAP51TO100 a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

~MKTCAP51TO100 has more chance of extreme outcomes than the NIFTY-50 index. Therefore, ~MKTCAP51TO100 must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than ~MKTCAP51TO100.

On a general note (since you are interested in ~MKTCAP51TO100), three instruments that are extremely volatile are SRIPIPES, HATSUN and ~HOMEAPPLIANCES. They must all be evaluated prudently and investors are better off avoiding them at the moment.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter