The week saw Mi50 loose three components. The gains in these trades were :
The three added are
The stock Kiriindus was bought at 213 at end of Apr 2016. It went to a high of 405 and now it got sold at 283. So majority of the intermediate gains were lost. This is the downside of a slow momentum system. A faster momentum system would have exited much earlier but would result in much higher trade frequency. It is better to highlight the shortcomings of the system than the positive. Once we learn not to switch strategies because of an incident like this, we will do well sticking to our original tested system.
Anyways, Mi50 closed at its highest weekly close. This week it outperformed the broader index marginally. It closed the current FY at +36.4% vs 14.6% for NSE50 and 17.4% for CNX500.
The composition of win:loss for the portfolio stands healthy at:
And those for the exits at :
The components added are 2 in automotive and 1 in pharma.
With the markets having seen singular directional move last many months, we are mentally ready for some rough weather ahead in the month. It is always good to be cautiously optimistic. A good friend taught me not to worry about the general market if your stock selection is sound and I believe if in addition to that if exit criterion is pre-decided and executed, there is no way we will lose capital.
Have a great weekend!