The Good Bad and Ugly weekly review : 03 Feb 2023

Yet another supremely volatile week where Nifty managed to hold on to 17300 and bounced roughly about 3% from there. Nifty has taken support at the 200 DMA twice in the last 4-5 months now. Last time Nifty took support at 200 DMA back in Oct 2022, we saw a superb rally of about 12% from there. Going ahead,18250 is an important resistance zone right now crossing which we can witness another rally all the way till a fresh all time high.

After successive weeks of dullness, Nifty returned a positive figure clocking (+1.42%) this week. Smallcaps also did well to pocket a (+1.3%) gain. Nifty Next 50 has been bleeding quite heavily owing to the exposure to Adani Group and is down almost 10% in the last 1 month. The index in itself has been witnessing immense volatility from a long time now. The story of FY23 has not been quite good honestly and we shall be dependent on the next couple of months to see if we can close on a decent note.

FMCG was the pick of the week returning a superb (+3.5%) followed by BANKNIFTY (+2,86%) & IT (+2.8%). IT has done quite well since the recent bottom around Sep 2022 clocking a decent 18% from there. This comes in as a sigh of relief for all those who were waiting for a U turn in this sector. METALS (-7.6%) & ENERGY (-6.3%) have been the worst performers this week. These two sectors have been the weakest in the last 30 days having lost about 13% each.

Mi NNF 10 has been extremely weak in the last one month losing almost 18% especially after putting up a spirited performance for a very long time. These are very volatile and unexpected times and we hope the strategy will be quick to recover and put a smile back on our faces very soon. Most WeekendInvesting strategies remained in line with the benchmarks this week. NG 5050 has been a strong performer as we have seen several times during market weakness. This strategy tops the list in terms of quarterly performance clocking (+6.9%) all thanks to the superb gold rally we have seen in the recent times.

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 for the week and the month for all the smallcases is presented 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.

WeekendInvesting Daily Insights – A New Initiative

We started a new initiative called – WeekendInvesting Daily Insights to share quick 1 minute content that can help you in your investing journey. Please do take a look at this week’s episodes by clicking on the image below.