How are the Markets Looking ?

Nifty index opened in a warzone between 21,750 and 21,800, that has been continuously monitored for support and resistance levels around this zone. In today’s session, there was a break out of this zone, leading to a fresh all-time high 22,126 in the first half of the session. However, the second half of the session saw a decline, bringing the index down 1.23% to the support level at 21,800. 

Nifty Heatmap

While heavyweight stocks like HDFC Bank experienced losses 1.38%, the technology sector saw gains, with stocks like Infosys (+2.19%) and TCS (+2.9%), Wipro performing well. Banking sector was a mixed bag. Reliance (+2.18%), also had strong upward momentum. ONGC also has done well, recording 3.8% gains, Coal India doing really well at 3.2%.Other sectors like non-energy minerals, real estate, and PSU stocks displayed positive performance as well.

Sectoral Overview

Coming to the sectoral overview, we can see PSE stocks, public sector enterprise stocks leading today’s chart gaining about 3.4% along with energy staying about 3.2% whereas commodities, IT, PSU banks, metals all clocking in excess of 2% to 2.4% to be precise. And you can see here Nifty is exactly at about 0.7% gain. The majority of the sector is doing really well, surpassing Nifty’s gains 

In the weaker sectors we have bank Nifty yet again losing steam. Bank Nifty after a good start early in the morning, losing steam to record a 0.5% loss today. Private banks are also in sync with bank Nifty. The contrasting performances of PSU banks versus the private banks continue with PSU banks clocking 2.2% today. And you can see the similar performance continuing here. One week performance at 11.5%, one month at 15.3%, and twelve-month performance at a very staggering 75.2%. Real estate is also doing well to make a comeback after the earlier slump last month at 1% gain today overall.

Mid & Small Cap Performance

A similar story for Mid caps, after hitting a fresh all-time high has remained choppy in the second half of today, losing some steam later in today’s session as we have seen in the case of Nifty as well. So again, we seem to be taking support around this zone. This was an important resistance level earlier which was being tracked by us. This is exactly where this sharp sell-off came in – this big sharp red candle right above 17,800 levels. So mid-cap index is exactly sitting at that level now and we’ll have to wait and watch how the next few sessions unfold in this index. 

Moving on to small caps which have been relatively stronger compared to the mid caps of late, at least having completely recovered from this and hit a fresh all-time high. But despite some weakness later today, but still looking quite strong compared to the rest of the benchmark indexes that we track. 

Nifty Bank Overview

Bank Nifty as you can see here, decent start for bank Nifty today opened high and then tried to kind of slowly pull into this trend line with the majority of the stocks doing really well earlier today. But the slump during the second half was pretty strong bringing bank Nifty once again into this choppy zone. So we’ll crucially have to wait and watch out whether bank Nifty is able to sustain hold this level again will be crucial to observe in the next few sessions for bank Nifty overall.

Power of Compounding – How to make your first crore

We have taken this example of a 25,000 rupee SIP at 14% XIRR. This may be slightly on the higher side perhaps. (Most of our strategies have recorded more than about 18% XIRR so conservatively we have taken 14% and we are also considering a 5% year on year step up in your SIPs) 

How much time period it takes for you to hit your first crore and subsequently make the next few crores? 

The analysis reveals that it takes twelve years to reach the first ₹1 crore milestone, while the second ₹1 crore is achieved in just 3.5 years. The subsequent milestones are reached at an even faster rate, with each additional crore taking less time to accumulate. The compounding effect becomes more evident as time progresses, with each crore taking a shorter duration to achieve.

This shows the long-term reward of consistent investing and illustrates the power of compounding. It is essential to persevere through the initial difficulties and capitalise on the compounding effect. While indulging in other aspects of life is important, the effort to allow compounding to have a lasting impact on the portfolio should not be neglected.

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