POINT97AMC
Updated POINT97AMC
Updated NIFTY slipped 0.22% on the day and is still below its short and medium term averages. The weakness is wider than the index shows: over the last 20 sessions the midcap and smallcap indices fell about 4.6% and 5.0%, while NIFTY was almost flat. Market nervousness has risen, and foreign investors are still net sellers for the month, although they bought in the last week. Because of this we remain about 95% in a liquid cash fund, which has protected the portfolio while the market fell. We are adding only to stocks that are already in uptrends, and only if they pull back to prices where the risk is small. We are not adding any other new position today. Next we are watching the results season, which starts for several of our holdings in the coming weeks.
The portfolio rose 0.025% while NIFTY 50 TRI fell 0.22%. EICHERMOT added 0.009% of the portfolio, SBIN added 0.008% and GICRE added 0.005%. DATAPATTNS, bought this session, took away 0.014% of the portfolio and we found no news to explain its fall. Cash added 0.016% and trading charges took away 0.001%.
| Holding | Intraday move |
|---|---|
| EICHERMOT | +1.88% |
| SBIN | +1.24% |
| IREDA | +0.89% |
| GICRE | +0.81% |
| HINDALCO | +0.29% |
| GRASIM | -0.03% |
| CGPOWER | -0.37% |
| DATAPATTNS | -2.05% |
| LIQUIDCASEcash | +0.017% |
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 market is under pressure. NIFTY is down 6.84% over the last three months, and the mid and small company indexes have fallen faster than NIFTY over the past month. Nervousness is rising and foreign investors have been net sellers this month, although they bought a little in the last week.
The wider manufacturing group is weak and trailing NIFTY. CGPOWER has held up better than that group, so the backdrop is mixed.
Defence shares have fallen about 5% in the past month and are trailing NIFTY. DATAPATTNS has lagged the group, so the backdrop works against it.
Auto shares are down about 10% over three months and foreign investors have been selling the sector. EICHERMOT has held up much better than the group, so the picture is mixed.
The financial sector has been falling for months and foreign investors have been selling it. GICRE has moved down with it, so the backdrop does not help.
The infrastructure and cement group is near its yearly low and foreign investors have been selling construction materials. GRASIM has fallen more than the group in the past month.
Metal shares have dropped about 8% in a month, much worse than NIFTY. HINDALCO has fallen with them, so the sector works against it.
The financial sector is weak and foreign investors have been selling it. IREDA has fallen much more than the sector, so the backdrop works against it.
Government bank shares have done better than the market lately, but they are still near their yearly lows. SBIN has lagged its own group, so the help is limited.
Pharma is the strongest part of the market and is beating NIFTY. MANKIND is ahead of both its sector and NIFTY, so the backdrop helps.
Tailwind: the sector and the market support the position. Headwind: they work against it. Neutral: mixed.
We bought DATAPATTNS after buyers pushed it sharply higher from a tested low. It is volatile in its first days, which we expected, and the position is small.
MANKIND is in an uptrend and jumped 8.2% on heavy buying on 27 October, doing better than NIFTY and its sector. We want to buy only on a pullback to 2,400 a level where the stock has traded little and often finds support.
The price bounced, but on light trading and it is still below a key long-term average. We are keeping the current holding and not buying more yet.
This stock is still weak and near its yearly low, and the company meets on 30 October. We are holding what we have and not adding.
We are not adding more.
The stock is holding its recent low but has not turned up yet, and results are due soon. We are staying with the current holding and not buying more.