Weekend Investing Daily Byte - 17 May 2024

Today, we will discuss Jupiter Wagons, a stock with a remarkable rally from Rs. 10 to Rs. 500. Its journey over the past decade offers valuable lessons for investors. We will be discussing this at the end of the blog.

Market Outlook

Turning to the Nifty, it had a milder day compared to yesterday’s roller coaster, but it has steadily moved up over the last week. Less than a week ago, Nifty was at 21,900, and now it’s sitting at 22,450, just shy of an all-time high. This strong recovery post the fourth phase of polling indicates a shift in market expectations from nervousness to confidence.

Nifty Heatmap

Mahindra and Mahindra performed exceptionally well today, up 6%. Other notable gainers included UltraTech Cement, JSW, and Grasim. Reliance also saw a modest increase of 0.75%, and BPCL did well too. However, there were several losers, particularly in the IT, FMCG, and pharma sectors, with some auto stocks also lagging.

The Nifty Next 50 heat map was greener, featuring significant gains in Bharat Electronics, Vedanta, Zydus Life, Siemens, Havells, and PFC, with IRFC up 7% today. Chola Finance and several wagon and rail companies are surging ahead. On the downside, Adani, HAL, Dabur, Godrej CP, and Pidilite lost ground.

Sectoral Overview

Autos, real estate, metals, and public sector enterprises were up 1.5% to 2%. Commodities, infrastructure, and consumption sectors increased by 0.7% to 0.9%, and energy rose by 0.6%. Nifty managed only a 0.3% gain, while IT lost 1%, and pharma was down by 0.1%. FMCG and banking remained flat.

Nifty Mid and Small Cap

Mid caps reached new all-time highs for the sixth consecutive day, indicating positive market sentiment ahead of the election results. Small caps are also near all-time highs and could break through in the next day or two, potentially triggering a strong rally. The market has been skeptical for months, and with many shorts in the system, a trigger on the upside could lead to a significant surge.

Nifty Bank Overview

The Nifty Bank showed mild gains

Nifty Next 50

Nifty Next 50 is at another new high. 67,000 and above.

Mahindra & Mahindra

Mahindra & Mahindra, in just four sessions, has gone from 2000 odd to 2520.

Nifty IT Index

Nifty IT index is the one which is sulking. Yesterday, I thought that this was going to be a good move out of this bottom, but today all those expectations have been smashed

Nifty REALTY Index

Realty index doing very well, again, at a new all time high.

Nifty Metal Index

Metals index doing very well. New all time high. So you need to see stocks within these sectors in case you are doing a short term swing or a discretionary kind of identification of stocks.

Nifty Auto Index

Auto index just going through the roof gap up and, and up. So, no time to even come and fill this gap this, during this day. So 23,400 odd on the auto index.

Jupiter Wagons

Now, let’s delve into Jupiter Wagons. The stock listed at about Rs. 150 in 2010, dropped to nearly Rs. 25, climbed back to nearly Rs. 100 by 2013, and then collapsed to under Rs. 10, where it stayed for almost a decade. From 2010 to 2021, the stock remained stagnant, causing most investors to lose patience. However, from Rs. 10, it has surged to Rs. 525. This exemplifies how stocks can experience explosive growth after long periods of dormancy, especially following company restructuring or new orders.

We observed that the big move started when it hit an all-time high, highlighting the importance of such milestones. At Weekend Investing, we bought it in a few strategies. This stock’s performance reinforces the idea of not wasting time on stagnant investments and instead betting on stocks that are already winning.