Markets Overview

Nifty 50 has been flat and also a bit volatile this week. As we can observe from the chart, the benchmark did make a couple of highs with the latest ATH at 22775, but there was a stiff test every time a new high high was established thus confirming the lack of continuity in the up trend. The low created on 09th of Apr was an important support zone which seems to have been comfortably broken by a sharp selling that occurred on the last session of the week. Going forward, we will monitor 22300 as the next support level while the latest ATH will serve as the immediate resistance.

Benchmark Indices & WeekendInvesting Strategies Overview

Markets were quite muted this week barring some of the lower cap segments which did well. Nifty Jnr, though, has been splendid with gains of 0.6% this week followed by Smallcap 250 and Mid-Small 400 at around 0.5% gains each. As far as FY 25 performance is concerned, Smallcap 250 index has taken a very strong lead at 6.9% but we will have to wait and watch how things go as we near elections, the global narrative on cut in interest rates and few more events that could play a crucial role in determining the course of action.

NG 5050 topped this week’s chart clocking 2.6% riding on Gold’s solid performance followed by Mi ST ATH at 1.9%. Mi 30 also did well to return about 1% but a few strategies returned flattish results and some other had a difficult turnaround in this difficult and volatile week. In the first two weeks of this FY, Mi 35, Mi EverGreen and NG 5050 have taken a strong lead clocking in excess of 5%.

Sectoral Overview

METALS have continued to perform really well returning a superb 2.9% this week followed by REALTY and AUTO at 1.6% and 1.2% respectively. PSE, COMMODITIES and ENERGY stocks did well to return about a percent each while the others remained muted or in the mildly negative territory.

Again, METALS have been in a very strong momentum clocking a superb 8.4% in the first two weeks of FY 25 while REALTY which has done a very good recovery job to come back strong at 5.8% this FY 25. PSE’s have done well too to return about 5% in FY 25.

METALS continue to do well to secure the top position in the sectoral momentum ranking chart too. Despite not being the best performers in the 3 & 6 month charts, METALS have occupied the top position due to their splendid performance in the past couple of weeks and the past month. REALTY have come back strong after a minor profit booking round to occupy the second spot as PSE’s take in the 3rd position after s string of consistent performances. The spotlight is on GOLD though which has performed extremely well in the last month as markets navigated through a little bit of volatility. PSU BANKS seem to have slipped down a little bit relatively while there seems to be no change of fortune for IT, FMCG and MEDIA which continue to languish at the bottom.

Rebalance Update for the week !

Spotlight - Mi EverGreen

Time for GOLD to take off ?

Gold has been playing a very critical role in offering remarkable stability every time there has been a scare in the economy or the markets. In the recent times, GOLD has outperformed the Nifty 50 by a significant margin as we navigate through a volatile phase. Since late Jan 2024, GOLD has clocked a superb 16% while Nifty 50 has remained flat at under 2% gains.

We have compiled three important charts showcasing how GOLD would’ve offered stability had you held this precious metal (in any format) right before a major crash.

Chart 1 – Pre COVID Top

It may be surprising to note that both equities and GOLD may have the same performance if you measured right before the COVID crash. Allocation to GOLD would have ensured that your portfolio remains a bit more stable during this tough phase.

Chart 2 – Pre GFC Crisis Top

Pre GFC crash, GOLD has a strong lead against Nifty 50 with a resounding 503% gains compared to only 266% on Nifty 50

Chart 3 – Pre Dotcom crash Top

GOLD has yet again outperformed Nifty clocking 1455% compared to 1260% since pre dotcom crash top.

Check out Mi EverGreen

Mi EverGreen is a remarkable combination of top 200 stocks (75% allocation) and the goodness of GOLD (25% allocation).

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