- Markets all over the world cracked down sharply in the last few sessions owing to many reasons. The continued hawkish approach by central banks has not augured well for the markets which were slowly starting to show upward momentum. Nifty which touched all time high back on 01 Dec 2022 has been on a down trend ever since then losing about 5.35% from the recent peak of 18887. The last 3 sessions in particular have been quite difficult to muster with strong negative closing. It will be interesting to see how the markets react to the strong support zone around the current level which was an important resistance zone that Nifty conquered to make a fresh all time high.
- This week was the hardest for mid & small caps which tanked quite hard. Smallcap 250 dropped a massive 7.9% while the mid-cap400 index lost 6.39%. Nifty Jnr also lost about 5 odd percent. Nifty 50 has been the strongest relatively dropping about 2.53%. This has been quite unexpected as we have also slipped into 5% plus drawdowns across all benchmarks in a very short span of time while losing all gains made in the current FY 23.
- PSU Banks saw a brutal dip of about 10% against a mind blowing run in the current FY 23. In this week, this sector turned out to be the weakest amongst the sectors we track while still holding the first place in terms of overall performance across 3 months (27.34%) & current FY (42.67%). PHARMA displayed the usual relative strength during weak scenarios clocking about 1.17% this week. Except for a few conservative ones, most sectors lost more than 4% in the current weak.
- WeekendInvesting strategies took a massive beating mirroring the overall market performance with midcap, smallcap & allcap bouquet losing in double digits. This week was particularly ruthless from the perspective of losing most of the gains made so far in the current FY. Except for a few, most strategies have slipped into the negative territory this FY. Absolute momentum strategies have increased their allocations to cash and rotational momentum strategies would move into the strongest as usual. Falls like these can test the conviction of especially new investors but we all know corrections are temporary and markets will certainly get back into upward trend again as we have seen time and again. Fingers crossed.
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.
Become a WeekendInvestor
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.
We have created a document consolidating all important links that are often associated with WeekendInvesting. Click here (or on the image below) to access the same.
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.
You may go through our latest weekly report for more details.
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 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 the below link.
Become a WeekendInvestor
This is all for this week. Please stay safe and we shall meet again next week. Bye!