The Good Bad and Ugly weekly review : 18 Apr 2023

Green Shoots are back ! Nifty has rallied about 6% after it’s lower low back in mid March 2023. In this journey, the index broke out of the receding channel, 200 DMA & also the previous swing high at 17800 which needs to sustain in order to move further higher. RSI is also steadily moving up all pointing towards continuation of the uptrend. We hope for the best !

We are off to a solid start to FY 24 with all benchmark indices clocking between 2% to 3.5% with Midcaps and Smallcaps taking a lead in this rally. This week saw the benchmarks returning between 1% to 1.5%. This uptrend must surely come as a sigh of relief to everyone especially after the difficult time in the last 18 odd months.

REALTY has off to a flying start this FY 24 already clocking 9.7% in the last two weeks. The current week saw this sector raking in 5% gains. AUTO broke out of it’s 200 DMA capturing 3.6% in the process. With happy gains all around, one sector which continues to languish at the bottom is the IT becoming the only one to record negative numbers in the current week as well as FY 24.

Thanks to the lead from midcaps and smallcaps – Mi 20, Mi 50, Mi 35 & Mi 25 all witnessed great performance this week. Mi 20 is up 6.3% this FY 24 followed by Mi 35 at 4.4%. Overall, we are quite happy with the way this FY has begun and we hope good times will continue.

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.

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 upcoming rebalance on 03 Apr 2023 will be a biannual rebalance where stocks are updated as per changing underlying indices and weights shall be recalibrated back to original weights as per the composition of the respective strategies (Mi20, Mi35, Evergreen specifically)

The performance of all strategies across various timeframes are listed 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.