The WeekendInvesting Newsletter - 19 Feb 2024

Strategy Spotlights

MRPL probably may not have been on anyone’s radar till recently. Why so ?

Simple. The stock has been an absolute non performer for TWO MASSIVE DECADES.

MRPL hit a high of Rs149 back in Jan 2008 and had been struggling within a tough range for a long time but things changed in March 2023.

The stock made a higher low indicating that the worst may potentially be over. It was in Jan 2024 that MRPL made a new all time high and has clocked a mammoth 100% gains since break out and an astronomical 5x gains (as on 19 Feb 2024) since Mar 2023. Mi ATH 2 picked the stock at Rs 121 back in Dec 2023 and has enjoyed a quick 132% gain in no time (as on 19 Feb 2024)

This once again proves two things

• Power of a long term breakout

• Power of non discretionary (momentum) style of investing where potential winners are allowed to enter without any bias and are also allowed to run till momentum dries out. . . . . .

  

What can happen post Modi 3

The Japanese stock market chart is etched in investors’ minds, a symbol of both hope and caution. While it recently hit a new high, its 34-year journey paints a different picture than the quick gains often touted.

This begs the question: is index investing truly the foolproof strategy it’s made out to be?. . . . .

Reading Time : 3 Minutes

Why pattern recognition is important

For many investors, catching stocks at the perfect moment seems like a magical ability. But what if I told you the secret simply lies in understanding patterns ?

While no pattern guarantees 100% success, recognizing them significantly increases the odds of a stock reaching its target.

But why do patterns work? It’s a self-fulfilling prophecy! . . . . .

Reading Time : 3 Minutes

WeekendInvesting Daily Bytes

With the markets hitting yet another all-time high on the 19th of February 2024, it’s a moment of potential joy for many market participants. However, amidst this milestone, there’s a note of caution. Despite reaching an impressive 22,186 points, the markets couldn’t sustain those levels, indicating a loss of momentum towards the day’s end. This brings us to a critical juncture at the resistance level of 22,120 to 22,130, which has previously capped Nifty’s ascent in the last month.

The silver lining, however, is the breakout . . .

Reading Time : 3 Minutes