Nifty has continued to remain volatile in it’s run up to making a fresh all time high. Though charts convey a continuation of the uptrend with higher highs and higher lows, the intraday volatility has been quite high right since mid May 2023. This can also be validated by the negative divergence issued by RSI but overall, we are still quite strong and very close to a fresh all time.
All benchmark indices have corrected by around a percent barring Nifty Jnr which gave up about 2.2%. Midcaps and Smallcaps have take a very strong lead in this rally with the Mid-Small 400 index & Smallcap 250 returning 17% & 16% respectively compared to 9% on Nifty 50.
All sectors that we track ended up on the negative side this week with IT standing out as the strongest (relatively) at -0.1%. Despite taking a 2% drop, REALTY has amassed a mammoth 31% in FY 24 to lead the pack followed by AUTOs at 18%.
Although WeekendInvesting strategies remained in line with their respective benchmarks clocking negative returns this week, we have seen some extraordinary performances in the recent past. Mi 20 has returned a superb 11% in the past month compared to 6% on its benchmark, the Mid-Small 400 index. This affordable strategy is also the best performer in FY 24 with 22.4% gains. Mi 50 has also been solid raking in 8.5% in the last month and 20% in FY 24. Let’s hope the good performance continues !
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.
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.
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.
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?
We also run a dedicated telegram channel for STAIRS which you may join using the below link.