The last session of the week provided much needed relief amidst what has been a dull last three months for the markets. After hitting a fresh high of 18887 on 01 Dec 2022, Nifty has dropped about 7% but the encouraging sign is that we have bounced from the 200 DMA and we also see some FIIs starting to buy. Nifty has been making lower highs and lower lows since achieving a fresh all time high. We will need some more momentum in the markets to take Nifty beyond previous resistance at 18134 to confirm the beginning of a potential up trend. A break out from the channel depicted in he above image can lead to a very strong rally.
Mid-small 400 index clocked 1.5% to lead the pack for this week followed by Nifty Jnr (1.34%). The former is also the best performing index across the last 12 months clocking a decent 7% considering how markets have moved. An encouraging sign would be that the last 30 day performance has gone from negative to flat across all benchmark indices.
PSU BANKS sprung right back with a stellar performance clocking 9.75% this week follow by REALTY at 8.29%. All sectors except for some defensive ones like PHARMA , FMCG & AUTO did well while IT witnessed some profit booking. The last trading day was extraordinary for PSU BANKS with a fantastic 5.4% gain. Banks seem to be taking the lead in this bounce.
Among WeekendInvesting strategies, Mi EverGreen had a spectacular week returning 3.2% followed by Mi 20 (2.8%) which rode on the back of a superb run by it’s benchmark – the mid-small 400 index. Almost all strategies barring a couple did well to follow the markets which seem to have initiated a new up leg. With 4 more weeks to go, we hope to finish out FY 23 on a decent note.
A SHORT COURSE to Help you Stay Calm in All Market Conditions
Usually, quick – sharp corrections amidst a Bull Run creates ambiguity in the minds of lots of new investors. The most important question we often get asked is whether markets will crash from here. Should we exit? and a few other questions like these. We have made several videos to help you clarify many such questions and help you have the RIGHT MINDSET for a rewarding journey in investing.
We have put together a few of our previous Daily Bytes which we think might be relevant for times like these. Do have a look and send us your thoughts, questions or comments if any.
The smallcase products are all LONG ONLY products that invest in various subsegments of the markets but have the momentum theme underlying in all of them. The strategies will pick strong outperforming stocks and remove weak ones once a week (except Mi NNF10, Mi EverGreen & Mi India Top 10 which is monthly rebalanced)
These are all long-term strategies that will create enormous wealth in each upswing and then maybe give some back in the downswing and repeat this process again and again achieving the compounding effect. With patience and grit to follow strategy over ups and downs over the last nearly five years, it has been shown that much superior CAGR returns are possible than the benchmarks.
FY22 was also superb and I will let the numbers speak for themselves. You may read the Consolidated FY22 report.
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.
The performance of all strategies across various timeframes are listed below.
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.
WeekendInvesting Daily Insights – A New Initiative
We started a new initiative called – WeekendInvesting Daily Insights to share quick 1 minute content that can help you in your investing journey. Please do take a look at this week’s episodes by clicking on the image below.
STAIRS Revamped Models
STAIRS is a LONG / SHORT derivative strategy that is designed to offer an uncorrelated diversification option to your equity portfolio. STAIRS will do well when there are up trends & also when there are down trends while giving up some of the gains when markets remain rangebound/volatile.
You may go through our latest weekly report for more details.
All 4 STAIRS models go in line with our fundamental philosophy of making the most and compounding aggressively when markets give us trends and go very defensive as trends fizzle out and enter a rangebound territory, thus providing robust capital & profit protection.
Effectively – STAIRS is a complete trading system (Futures & Options) that covers each of the following decisions required for a successful trading outcome:
• Markets – What to buy or sell?
• Position Sizing – How much to buy or sell?
• Entries – When to buy or sell?
• Stops – When to get out of a losing position?
• Exits – When to get out of a winning position?
We also run a dedicated telegram channel for STAIRS which you may join using the below link.