The Good Bad and Ugly weekly review : 20 Oct 2023

8 min read

The WeekendInvesting App !

A quick introduction to the Weekend Investing app, now available on Google Play and App Store. The app has been received with great enthusiasm, with over 5,000 users already joining. We encourage all weekend investors to download the app, as it provides numerous benefits and features that can enhance your investment experience. 

By joining the app, you will receive immediate notifications for urgent messages from us. Additionally, all our content, including YouTube videos and Twitter posts, can be accessed in one place. This ensures that you stay up to date with relevant and valuable information. Moreover, the app allows you to interact with our team, ask questions, and provide feedback. It offers a seamless and convenient channel for communication between investors and our support team.

One of the key advantages of the app is access to exclusive educational content and strategies tailored specifically for weekend investors. We offer educational US strategies, trend analysis posts, market psychology insights, and much more. By leveraging these resources, you can enhance your investing knowledge and make informed decisions. Furthermore, the app provides opportunities for online and offline meetups exclusively for WeekendInvesting subscribers, allowing you to engage with fellow investors and expand your network.

A unique feature of the app is the ability to book a one-on-one call with the Weekend Investing team. This personalised support ensures that you receive prompt assistance and have your queries addressed directly. Additionally, a chat feature is available to provide immediate solutions to any questions or concerns you may have. The aim of the app is to facilitate seamless interaction and provide phenomenal support to all weekend investors and app users.

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 newsletters for this week.

From the Research Desk of WeekendInvesting

One of the stories we covered was the potential third cycle on gold based on research by Crescat Capital. We discussed whether gold could potentially reach $10,000. Additionally, we conducted a case study on Bombay Dyeing and examined the performance of auto industry stocks over the past decade.

We also delved into the journey of Zoom Video and later compared intraday trading with positional trading. Another analysis we conducted explored whether it is too late to buy stocks once they start running. Additionally, we provided insights on HDFC bank, discussed how prices should guide investment decisions, and conducted a case study on Delta Corp, highlighting the relationship between its narrative and price movements.

Furthermore, we analyzed the impact of interest rates on the value of the dollar and gold in the past and present. Finally, we conducted a study comparing large-cap and small-cap stocks.

Markets this week

Nifty, as indicated by the chart, experienced a downturn and remained soft throughout the week. The external environment has been challenging, with the US market falling, US yields rising, and crude oil prices fluctuating. These factors have contributed to the downward movement of the Nifty. If the support levels at 19,300 or 19,250 are broken, further down moves are possible.

Sectoral Overview

In terms of sector performance, real estate, PSU, and infra metals experienced losses after a period of strong performance. For instance, despite the recent decline, real estate is still up 54%. Autos, on the other hand, were the only sector that saw marginal gains of 0.3% this week and is up 34% for the financial year. Public sector enterprises and public sector banks also experienced some losses but remained up by 33% each for the year. Banking, as a sector, has been the slowest performer this year, with only a 7% return compared to double-digit returns in most other sectors.

When considering sectoral momentum over different periods, we observed shifts in performance. Autos, media, and gold have seen improvements, while real estate, energy stocks, consumption, FMCG, PSU banks, and metals have experienced declines. Pharma is a space that may be showing signs of improvement.

Benchmark Indices Overview

In terms of index movement, small caps remained relatively stable throughout the week, with mid and small caps experiencing a 0.8% decline. CNX 500 and Nifty 50 both saw declines of nearly 1%, while CNX 200 decreased by 1.2%. The Nifty Next 50 was the worst hit, with a 1.6% decline. Despite this weekly decline, small caps are still up 41% for the financial year, while mid and small caps maintain a 34.9% gain. The Nifty, on the other hand, has achieved a 12.6% increase.

WeekendInvesting Overview

Now let’s turn our attention to the performance of Weekend Investing strategies. Mi 20 continues to be the standout performer, with a 2.4% increase for the week and a remarkable 68% gain for the financial year. Compared to the mid and small cap index, Mi 20 is nearly double in terms of returns. Mi 50 saw a 54% increase compared to the 41% gain on small caps and achieved a 1.3% increase for the week. Mi Evergreen and Mi MT All Cap strategies both outperformed their respective benchmarks, with gains of 28% and 32% compared to 15% and 18% on the CNX 200 and CNX 500, respectively.

While some strategies may not have performed well in the previous year, they have shown signs of improvement. Mi India Top Ten, for example, saw an 18% increase compared to the Nifty’s 12% gain. Mi 30 has achieved a remarkable performance of 54.8%, while Mi ATH 2 is close behind with a 40% increase. Mi ST ATH, on the other hand, has been the slowest performer with a modest 12.2% gain.

Spotlight : IRCON in Mi 25

In this week’s stock spotlight, the focus is on IRCON stock. Mi 25 saw IRCON enter the portfolio at Rs74 in April through Mi 25, and the stock has doubled in just six months. Despite the stock already doubling before the entry point, following the strategy’s rules and exit criteria mitigated the difficulties associated with conventional entry points. 

We also conducted a case study on Mi 25, which highlighted its performance in three different phases of the market. In the first phase, during a bull rally, small caps were up 80%, while the strategy realized a robust gain of 280%.

The second phase, marked by a market downturn, saw the strategy outperforming by limiting its drawdown to 28.8% compared to the market’s decline of 60%.

In the third phase, the strategy slightly underperformed the underlying index but still achieved a substantial gain.

When we combine the results of all three phases, Mi 25 yielded a cumulative gain of 682% compared to the small cap index’s gain of 204%.

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 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

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 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?

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

Inline Feedbacks
View all comments

Related posts

Practical insights for wealth creation

Join the thousands of regular readers of our weekly newsletter and other updates delivered to your inbox and never miss on our articles.

Thank you. You will hear from us soon.

Mail Sent Failed !


    The Good Bad and Ugly weekly review : 20 Oct 2023