POINT97AMC
Updated POINT97AMC
Updated NIFTY rose 0.51% in the last session and 2.00% over the past week. The rise was narrow: mid-sized and smaller companies are still falling, with their indices down 3.75% and 5.81% over 20 sessions. Pharma and healthcare are the only parts of the market with a clear upward trend. We keep about 95% of the portfolio in a liquid fund, which has protected us while the market has been weak. Our eight holdings are small and each one has a preset limit on how much it can lose. Several of them report results in the next two weeks: SBIN on 3 November, HINDALCO and DATAPATTNS on 6 November and GRASIM on 13 November. We are waiting for stronger stocks to pull back to good prices rather than buying just to be invested.
The portfolio fell 0.05% in the last session while NIFTY 50 TRI rose 0.51%, helped by GRASIM (+0.01% of the portfolio, stock +1.66%), and held back by DATAPATTNS (-0.04% of the portfolio, stock -5.51%), GICRE (-0.02% of the portfolio, stock -3.55%), CGPOWER (-0.02% of the portfolio, stock -3.11%). Cash in LIQUIDCASE added +0.03%.
| 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 | +0.034% |
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).
NIFTY is down about 6% over the last three months, though it has risen about 2% in the past month. Mid-sized and small companies are weaker than the big ones. Foreign investors sold heavily in October but bought in the last two sessions, and the market is cheaper than a year ago. News on the Middle East and oil cuts both ways.
Manufacturing shares have been falling and are well behind NIFTY. CGPOWER has fallen with them, so the sector works against it.
Defence shares have fallen about 6% in the past month and are behind NIFTY. DATAPATTNS has fallen about twice as much as the sector.
Auto shares have fallen about 12% over three months and foreign investors have been selling the sector. EICHERMOT has held up better than other auto shares, but it is swimming against the tide.
The financial sector is weak and GICRE has fallen further than the sector. Neither the sector nor the market is helping it right now.
The infrastructure sector has steadied after a weak quarter and is keeping pace with NIFTY. GRASIM has held up slightly better than NIFTY over three months.
Metal shares fell about 8% in the past month and are well behind NIFTY. HINDALCO has also lagged the market, so the sector is a drag.
The financial sector has been falling and foreign investors have been selling it. IREDA has fallen much more than both the sector and NIFTY, so the backdrop is against it.
Government bank shares have risen over the past month and are beating NIFTY. SBIN has not kept up with them, so the help from the sector is small.
Pharma is the strongest sector right now. It is near its yearly high and beating NIFTY. MANKIND has also beaten NIFTY over three months.
Tailwind: the sector and the market support the position. Headwind: they work against it. Neutral: mixed.
We are holding this stock as it is. Nothing new has appeared that justifies putting more money in.
The stock is recovering, but we want stronger proof and to see its results before putting more money in. We keep the current holding.
The stock has not moved enough to show it is working, and results come out tomorrow. We hold what we have and add nothing.