POINT97AMC
Updated POINT97AMC
Updated NIFTY rose 0.51% in the last session and 2.00% over the past five sessions, led by large companies. The move was narrow: the midcap 150 index is still down 3.77% and the smallcap 250 index down 5.75% over 20 sessions, and both remain below their longer-term averages. Foreign investors were net buyers for the week for the first time since mid-August, but they are still heavy sellers for October as a whole. Most of our holdings slipped on the day even as NIFTY rose, so we remain about 95% in cash and are adding no new risk to them. Our positions are small, and each has a protective level set below the price area that has to hold. We are watching SBIN's results on 3 November and waiting for a pullback in a strong pharma stock before we commit more money. We are not adding a new position today.
The portfolio fell 0.035% while NIFTY 50 TRI rose 0.51%. DATAPATTNS fell 5.51% (-0.037% of the portfolio), GICRE fell 3.55% (-0.024%) and CGPOWER fell 3.11% (-0.021%). GRASIM was the only gain, up 1.66% (+0.011%). We found no specific news behind most of these falls, and GICRE had a board meeting that day whose outcome we cannot see. Cash added 0.049% of the portfolio.
| Holding | Intraday move |
|---|---|
| GRASIM | +1.66% |
| HINDALCO | -0.18% |
| EICHERMOT | -0.25% |
| SBIN | -1.03% |
| IREDA | -1.68% |
| CGPOWER | -3.11% |
| GICRE | -3.55% |
| DATAPATTNS | -5.51% |
| LIQUIDCASEcash | +0.051% |
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 still under pressure. NIFTY 50 has bounced about 1.8% in the last month but is down about 6.4% over three months. Mid-sized and smaller companies are doing worse than the big ones. Foreign investors sold heavily in October, though they bought in the last week, and shares are cheaper than a year ago.
Manufacturing shares have been falling for three months and are lagging the market. CGPOWER has fallen with them, so the sector is a drag.
Defence shares have been falling and are behind the market. DATAPATTNS has fallen even more than the sector, so the backdrop works against it.
Car and bike makers have fallen for three months and foreign investors have been selling the group. EICHERMOT has held up better than the group, but the backdrop is still against it.
The financial sector is weak and GICRE has fallen more than the sector. Neither the sector nor the market is helping this stock right now.
The infrastructure group is steady and keeping close to the market. GRASIM has held up a little better than the group over three months, so the backdrop is neither a help nor a hurt.
Metal shares have fallen sharply this month and are doing much worse than the market. HINDALCO has fallen with the group, so the sector works against it.
The financial sector has been weak for three months and foreign investors have been selling it. IREDA has fallen much more than the sector and the market, so the backdrop works against it.
Government-owned banks have been doing better than the market over the last month, which is a small help. SBIN has been slower than its own sector, so the picture is mixed.
Pharma is the strongest part of the market. It is at its yearly high and beating NIFTY 50 by a wide margin. MANKIND has kept pace over three months, so the backdrop helps.
Tailwind: the sector and the market support the position. Headwind: they work against it. Neutral: mixed.
The position is only slightly in profit and the price has not shown new strength.
The stock had a good day, but one day is not enough to back it with more money. We keep the current holding and wait for stronger proof.
The position has barely moved and results come out on 3 November. We hold what we have and will look again after the results.