After hitting a fresh ATH in early Dec 2022, Nifty has been trading in this receding channel making lower highs and lower lows thus confirming bearishness in the short term. In this period, we also saw Nifty taking support at its 200 DMA twice before finally breaking down earlier this month. Markets have been hit by negative news one after the other completely removing any scope for optimism. 16745 is a mighty crucial support as we saw Nifty issuing a strong bounce from this level back in Oct 2022 going on to hit a fresh ATH.
All indices lost between 0.5% to 1.5%. With one more week to go, we have been a witness to a choppy year in the markets with bulls and bears fighting it out neck to neck. Every time we saw a breakout on the upside, there was an immediate round of sharp selling confirming the failure to continue the momentum.
As we see usually during weak times, money flew into defensive sectors like FMCG and PHARMA which were the only sectors to clock positive gains this week. METALS & REALTY were hit the most losing about 4% each. FMCG had a superb year amidst all the volatility to clock 24% gains to occupy the second spot only behind PSU BANKS @ 31% with one more week to go in FY 23.
Nothing much to report on the performances of WeekendInvesting strategies which mostly remained in line with their respective benchmarks. NG 5050 and Mi 25 had a relatively decent outing clocking 0.7% & 0.3% respectively. It has been a tough year for all of us but we as WeekendInvestors are very well aware of the fact that markets are certainly not linear. We will have to embrace turbulence and adopt a long term view if are to succeed in the long term.
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.
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?
We also run a dedicated telegram channel for STAIRS which you may join using the below link.