Textile THEME

867.135 -8.49 (-0.98%) Buy

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Looking to invest in TEXTILE THEME? Look for alternatives because it ranked worse than it's peers

15 min read

Textile ranked worse than it's peers on Friday. It fell by -0.98% to close at 867.135. On a day when the overall market breadth was 71%, it closed higher than 17% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Theme constituents]

~TEXTILE showed a strong bullish trend over the last 3 months. During this period ~TEXTILE increased by +13.6% and saw a maximum drawdown of -12.01%. There were 2 long signals during this period that returned a cumulative of +6.53% to investors.

Trend

~TEXTILE has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 17 May, 2018 to 11 Dec, 2018. Over the last 8 months and 2 days, ~TEXTILE underperformed the NIFTY-50 index on 50% days. Which indicates that on days ~TEXTILE 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 ~TEXTILE was mostly profitable and delivered on average +0.21% per day. It's best return during this period (of +3.59%) was on Monday, 24 Dec, 2018. While it's worst loss in the same period (of -2.69%) was on Friday, 7 Dec, 2018. The longest stort-term trend during this period was 8 losing days, which started on 20 Nov, 2018 and ended on 30 Nov, 2018. This bearish trend lost -4.21% of investor capital.

During the last year ~TEXTILE had 5 profitable months and 7 loss making months. ~TEXTILE returned profits in more months than NIFTY-50 index. ~TEXTILE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -16.54% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~TEXTILE and NIFTY-50 index, both had periods of 3 consecutive profitable months. It is interesting to note that both ~TEXTILE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

As long as you're going to be thinking anyway, think big.
-- Donald Trump

~TEXTILE 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 surge in ~TEXTILE's volatility from 3 Dec, 2018 to 17 Dec, 2018. 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 ~TEXTILE has significant negative skewness in it's return distribution. This indicates that ~TEXTILE is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in ~TEXTILE you may find it interesting to know that TORNTPHARM, BRITANNIA and INFY are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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