The Good Bad and Ugly weekly review : 17 June 2022

Performance Update

Nifty cracked below the all important support level of 15500 – 15700 from where we witnessed multiple bounces in the last 12 months. We have also been seeing Lower Highs & Lower Lows since the recent Oct 2021 peak. The current bearish trajectory may be a result of several factors that are already known to all. We have listed a few of the important ones below.

In an attempt to control inflation, the FED bumped up the interest rate by 75 bps which was considered to be the biggest rate hike in the last 28 years. With inflation levels also recording massive multi decade highs in the US and across the world, there is a fear of recession as well. All these factors along with the continued uncertainty around Russia – Ukraine situation seem to be acting as a block to the the larger up trend we have been seeing post COVID fall. There certainly will be many such cycles being played out but if you are a long term investor following a good strategy, you need not worry and may continue your SIPs.

Benchmark Indices fell between 5% to 7% this week while the drawdowns seem to have crossed 20% in a few indices too. METALS have now lost (-17.51%) in the last 30 days. While all WeekendInvesting strategies remained in red, absolute momentum based strategies took a lesser beating owing to the CASH component. But – as we have said many number of times, it is during such times that conviction of an investor is put to test. Performance is updated below.

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