Introducing “The WeekendInvesting Newsletter”

Another brand new initiative from our Research Desk is The WeekendInvesting Newsletter. This is a daily newsletter that summarizes all the stories we cover during the day(market nuggets), including the daily byte that we shoot every evening. This newsletter will be delivered to your email every evening on market days, providing you with a wealth of market-related information. The newsletter includes both summaries and long-form blogs for all the market nuggets covered. These blogs are also linked to the videos we shoot, so you can choose to watch or read the content according to your preference.

Check out our past newsletters.

From the Research Desk of WeekendInvesting

Why pattern recognition is important

For many investors, catching stocks at the perfect moment seems like a magical ability. But what if I told you the secret simply lies in understanding patterns ?

What can happen post Modi 3

The Japanese stock market chart is etched in investors’ minds, a symbol of both hope and caution. While it recently hit a new high, its 34-year journey paints a different picture than the quick gains often touted. This begs the question: is index investing truly the foolproof strategy it’s made out to be?

Be in the top10% list – not the bottom 80

2024 has witnessed an interesting phenomenon: the Mi India Top 10 strategy, a rotational momentum strategy based on Nifty 50 index, is significantly exceeding expectations. While Nifty remains flat at 1%, the strategy boasts a 14% gain in just two months. What’s the secret behind this outperformance?

Happy with Gains made or Sad with Gains lost ?

In the fast-paced world of investing, where every stock seems to have its moment in the limelight, Bajaj Auto has quietly climbed the charts under the radar. But why is this two-wheeler giant, steadily rising from ₹4,000 to nearly ₹8,400 in less than a year, going unnoticed?

Is your EGO winning or your Portfolio ?

The Zomato story is a stark reminder: sometimes, stubborn narratives blind us to reality. While established giants like HDFC Bank underperform, “unconventional” picks like Zomato soar. So, what’s the lesson? It’s time to consider letting go of your ego and embracing the potential of mechanical, rule-based investing.

How Index investing feeds itself.

The “Magnificent Seven,” comprising Apple, Amazon, Nvidia, and other tech giants, dominate the S&P 500, raising concerns about overvaluation. But are these worries justified? This article explores the phenomenon of index investing and how momentum strategies can navigate this crowded trade.

The super advantage of retail/HNI investor!

Imagine a stock, once soaring high, now swirling in a whirlpool of decline. That’s Whirlpool India, and its current state perfectly captures a crucial truth: in the investing game, size isn’t everything. While big players struggle, retail investors like you hold a surprising advantage – agility.

Are you also waiting for it to RAIN ?

Rain Industries, once a shining star with a meteoric rise, now casts a shadow of disappointment for many investors. Stuck at ₹200, far from its 2017 peak of ₹450, it begs the question: will it finally rain again, or is it time to move on?

Is it Time to do PayTM Karo ?

Paytm’s recent jump from ₹320 to nearly ₹390 has sparked excitement, but before you dive in, take a breath and zoom out. Here’s why this short-term bounce might not be the buying opportunity you think it is.

The most important thing you will see this year – GOLD

The future of the markets might be gleaming with gold, and it all hinges on interest rates. This article dives into historical trends and unveils a compelling reason why gold could outperform stocks when interest rates take a dip.

Markets this week

Nifty had a decent start to the week with two consecutive positive sessions taking the index to a fresh all time high at 22250 but a sharp sell resulted in giving back 375 points across just one session. Post 22nd Feb 2024, Nifty put up a very strong show to recover from the short correction and posted a new all time high as well on 23 Feb 2024 which also happens to be the second consecutive ATH weekly close

Benchmark Indices & WeekendInvesting Overview

Performance of all benchmarks ranged between 0.4% to 1% on the weekly front with Nifty Next 50 taking the top spot with 1% gains and Mid-Small 400 index at the bottom. Smallcap 250 continues to lead the FY 24 performance table with a handsome 72%. Nifty Next 50 has also done exceedingly well clocking 56% for a large cap based index which may truly surprise anyone.

WeekendInvesting strategies had a good outing with a bunch of strategies outperforming their respective benchmarks quite comfortably. Mi 25 topped the weekly chart with 1.5% gains, a handsome outperformance compared to Smallcap 250 which clocked only 0.5%. Mi MT Allcap continued its solid run clocking 1.4% this week to take the second spot. Mi ST ATH and Mi NNF 10’s performance hovered around the 1% mark while Mi India Top 10 gave up a bit of the gains.

Mi 20 continues to hold the top spot in the FY 24 table with a stupendous 123% gains followed by Mi 35 at 107%. Mi MT Allcap continues to remain robust nearing the 100% mark for the FY but the real highlight has to be Mi NNF 10 also around the 90% mark compared to only 58% gains on the Nifty Next 50 index. All strategies are looking extremely solid as we near the end of FY 24.

Sectoral Overview

The real estate sector continued its dominance, rising 4% this week and a staggering 137% for the year. FMCG, consumption, and infrastructure also saw gains, while PSU banks and metals took a breather after their recent surges.

Real Estate continues to dominate the FY 24 chart with a superior 137% gain followed by PSE stocks at 108% gain. AUTO’s have done really well to clock 68% this FY 24 as well. PSU Banks took a pause this week with a loss of 0.8% but the FY gains still look very strong at 90%. PSE also lost a bit of ground this week but continue to find itself at the second spot of FY 24 chart with a handsome 108% gains.

PSU BANKS hold on to #1 across 2 weeks, 1 month and also on average totally confirming the presence of vigorous bulls. Real Estate has found it’s way back to the top #2 having done well to recover from the recent slump. PSE has slipped to #3 owing to a relatively weaker last couple of weeks. AUTOs have been making silent progress raking in #2 spot on the fortnightly chart. COMMODITIES have slipped quite a bit along with METALS. BANKS have done quite well last week to occupy the #5 position making decent strides in the ranking.

WeekendInvesting Strategy Spotlight

Mi NNF 10’s impressive lead over it’s benchmark – Nifty Jnr

Mi NNF 10 has continued to be an exceptional performer for WeekendInvesting maintaining its consistent lead over the benchmark – Nifty Jnr index. Despite the short slump around Oct’22 – Jan’23, Mi NNF 10 has put on a superb recovery in FY 24 to once again claw back in to the 30%+ CAGR territory (12 Nov 2020 to 22 Feb 2024)

The important point to note is the healthy outperformed achieved by the strategy over the Nifty Jnr Index right since start.

Rebalance Update

We give advance notice here on the upcoming changes in your smallcase for Monday. This advance notice can be used to ignore Monday’s update if there is no change. If there is a change indicated you can use the smallcase app or log in to weekendinvesting.smallcase.com to see the rebalance. A backup email is sent by mid-day Monday if you have not rebalanced by then and yet another one a day later.

Note: We are not including LIQUIDBEES as an ADD or an EXIT count.

WeekendInvesting Strategies Performance

WeekendInvesting Products – LIVE Index Data

Many of you had asked us to make the index series of all WeekendInvesting Products available so that you could perform your own analysis and studies. You can find a link to the LIVE sheet here and also on the HUB under the support column in the content tab.

WeekendInvesting Telegram and YouTube Channel

We post daily content related to investing on our Weekendinvesting Telegram Channel and YouTube channel to help our community take stock of the performance of markets, sectors & our products and touch base upon a new topic every day. We look forward to having you all there! Several videos in this blog are from this series.

Introducing M Profit

That’s it for this week. See you in the next week’s report