POINT97AMC
Updated POINT97AMC
Updated NIFTY ended 27-Oct almost unchanged at 22,700, but it is still down 1.69% over 20 sessions and trades below its 20-day and 50-day averages. Smaller companies have been hit harder: the midcap 150 index is down 6.44% and the smallcap 250 index is down 6.73% over the same 20 sessions. Foreign investors were buyers on 27-Oct and had their first week of net buying since mid-August, but they are still large net sellers for October. We remain mostly in cash, about 96% of the portfolio, which keeps earning the overnight rate while we wait for better conditions. Our seven holdings are small and each has a loss limit in place. We are not adding any other new position today. Next we are watching quarterly results for our holdings, starting with the GICRE board meeting on 30-Oct.
The portfolio fell 0.013% against a 0.02% fall in NIFTY 50 TRI, so it was a flat day for both. GRASIM (-0.011% of the portfolio), SBIN (-0.010%) and IREDA (-0.007%) took the most away, while EICHERMOT (+0.004%), HINDALCO (+0.004%) and CGPOWER (+0.002%) added a little. We found no news dated today for any of these moves, so no clear reason was found. Cash added 0.008% of the portfolio.
| Holding | Intraday move |
|---|---|
| EICHERMOT | +0.92% |
| HINDALCO | +0.63% |
| CGPOWER | +0.26% |
| GICRE | -0.40% |
| SBIN | -1.63% |
| GRASIM | -1.67% |
| IREDA | -2.13% |
| LIQUIDCASEcash | +0.009% |
Entry and exit prices are rounded and averaged over every buy and sell of the stock. Gain since we bought and gain / loss: the price change from our average entry, before charges. Intraday move: each stock over the session (from our buy price for a stock bought that day).
The broad market has been falling. NIFTY 50 is down 6.44% over about three months and the smaller company indexes have fallen even more over the last month. Foreign investors have been net sellers in October, though they bought on the latest day, and market valuations are lower than a year ago.
Manufacturing stocks have been falling, which is a drag. CGPOWER has held up much better than its sector.
Auto stocks have fallen about 10.5% in three months and foreign investors have been selling the sector. EICHERMOT has held up better than the group.
The financial sector is weak and foreign investors have been selling it. GICRE is lagging the sector slightly, so the backdrop does not help.
The infrastructure and cement group is mixed and foreign investors have been selling cement-related stocks. GRASIM has recently done worse than the group.
Metal stocks have fallen sharply over the last month and have lagged the market. HINDALCO has followed the sector down.
Financial stocks have been falling and foreign investors have been selling them. IREDA has fallen much more than the sector, so the backdrop works against it.
Public sector banks have held up better than the wider market, but they are still near the low of their yearly range. SBIN has done worse than the group.
Defence stocks have fallen over the last month but are still ahead of NIFTY 50 over three months. DATAPATTNS has slightly lagged the group.
Tailwind: the sector and the market support the position. Headwind: they work against it. Neutral: mixed.
DATAPATTNS bounced 9.16% on 27-Oct on about five times normal volume after testing its October low.
We are not adding to this stock yet. It has only just been bought and nothing new has confirmed that buyers are in charge.
We are holding what we have and not buying more. The company meets its board in three days and the share price is still weak.
We are not buying more of this stock. It has made no progress since we bought and sellers are still stronger.