TOUCHWOOD – we have seen a continuous upward rally since Mid June 2022. But we have been witnessing continuous Lower Highs being made since the peak in Oct 2021 (as discussed in many of the previous editions of this report as well). It is going to be crucial to see if we can witness Nifty soaring above the previous Lower High at 16800 which may further pave way for a stronger upward momentum. Only time can tell. Fingers Crossed. Benchmark Indices all moved up well between (+2.8%) & (+3.6%). Another interesting insight that may bring cheer to many folks is the receding levels of FII selling we have been seeing this month. We saw some FII buying of around 1295 Crores on 05th of July 2022 and some low 3 digit crore selling following that. So these can be construed as positive signs for those who have been closely tracking the FII / DII data & it’s correlation to the index movements.
Almost all sectors closed the week in green with PSU BANKS (+6.62%) leading the charge. FMCG , CONSUMPTION & REALTY all did well to clock 5% plus this week. In the last 3 months, AUTO at (+11.29%) & FMCG at (+6.79%) have been the avenues where money seems to have flown during these times. Rotational Momentum based WeekendInvesting Smallcases tracked the market quite well with Mi NNF 10 (+2.94%), Mi 20 (+2.53%) , Mi EverGreen (+1.26%) & Mi 35 (+1.94%) leading the pack while absolute momentum based strategies remained muted due to the allocations in CASH. Performance is updated below.
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 questions we often get asked is whether markets will crash from here ? Should we exit ? and 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 NNF10 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 repeating 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 an advance notice here on the upcoming changes in your smallcase for Monday . This advance notice can be used to ignore Monday update if there is no change. If there is a change indicated you can use the smallcase app or login to weekendinvesting.smallcase.com to see the rebalance. A back up 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.
Large & Mid Cap Strategies – Performance
Mid & Smallcap Strategies – Performance
Smallcap Based Strategies
All Cap Based Strategies – Performance
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 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.! The several videos in this blog are from this series.
We have launched revamped versions of our STAIRS models and we had made a video giving you a basic introduction to the 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.
STAIRS models had a pretty good week capitalizing on the up trends. You may go through the Weekly Review
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 a 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 this link
This is all for this week. Please stay safe and we shall meet again next week. Bye !