Markets continue to remain dull as we witnessed a red candle (negative return) for the seventh consecutive session. The downtrend post breakout failure after surpassing budget day’s high has been quite strong with bears taking full control in a last few sessions. Lack of positive cues from has also resulted in presence of extremely weak demand. The low of budget day (17353) shall be a very crucial support zone if the markets were to bounce from here. If that support is broken, we may see a continuation of the current downtrend.
Nifty and all other benchmarks lost between 1.5% to 2.5%. Nifty 50 lost the most with (-2.67%) this week while Nifty Jnr continued to get beaten losing 10.3% in the last 30 days. In the last 12 months, Mid-Small 400 index is the next performer so far clocking 10.5% while Nifty Jnr remains the weakest with (-1.7%).
No sector was spared as selling continued all across the board. REALTY and METALS took a very strong blow losing between 5% to 6% while FMCG stayed relatively strong clocking a flattish (-0.5%). ENERGY & METAL stocks have been hammered in the last one month with the index losing a mammoth 15.47% & 18.9% respectively. These two sectors also occupy the last few spots on the FY 23 performance table.
All WeekendInvesting strategies lost between 1.5% and 2.7% pretty much in line with the markets. Momentum strategies need strong momentum to do well. We will lose out when markets are dull and hope to do better when markets move up. After two incredible years in FY 21 and FY 22, we have had a dull outing in the last 18 odd months mainly owing to lack of uptrends in the markets. We have addressed this in one of our videos this week.
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.
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 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.