Refiners THEME

1805.37 +1.98 (+0.11%) Buy

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REFINERIES THEME investors elated by performance

15 min read

Refiners ranked better than it's peers on Wednesday. It delivered +0.11% to close at 1805.37. It is currently trading -32% below it's 52 week high of 2657.19.

[Theme constituents]

~REFINERIES is currently in a bullish trend. Over the last three months Buy-and-Hold has been a better strategy (returning +2.56%) for ~REFINERIES's investors than trading long signals.

Trend

~REFINERIES has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 23 Feb, 2016 to 1 Sep, 2017. Over the last 3 years and 1 month, ~REFINERIES outperformed the NIFTY-50 index on 52% days.

During the last three months ~REFINERIES was mostly profitable and delivered on average +0.05% per day. It's best return during this period (of +4.31%) was on Friday, 2 Nov, 2018. While it's worst loss in the same period (of -3.91%) was on Tuesday, 30 Oct, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 12 Dec, 2018 and went on till 20 Dec, 2018. This bullish trend returned +10.48% to investors.

The last 12 months saw ~REFINERIES's investors making profits in 3 months and incurring losses in 9 months. ~REFINERIES was less consistent in delivering monthly returs than NIFTY-50 index. ~REFINERIES significantly outperformed NIFTY-50 index in Dec 2018, when it returned +7.71% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ~REFINERIES had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -30.71%.

"Wealth consists not in having great possessions, but in having few wants.

~REFINERIES is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in ~REFINERIES's volatility from 24 Oct, 2018 to 23 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

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

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

Based on your interest in ~REFINERIES you may find it interesting to know that KNRCON, SJVN and ~COMPRESSORS have all performed similar to ~REFINERIES and qualify as alternative investment candidates that must be evaluated for diversification.

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