The WeekendInvesting Newsletter - 25 Jan 2024

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HDFC Bank, once a stock market darling, has hit a rough patch recently, causing a stir among investors. The recent 15% dip in just five sessions has triggered concerns, especially when the stock hasn't witnessed significant growth in the last three years. The burning question: Is HDFC Bank casting a shadow on Nifty 50?

In this live, we try to unravel the intricacies of HDFC Bank's impact on Nifty and explore the reasons behind its lacklustre performance.

Watch the full video linked below to understand "How Heavy weight Nifty stocks can mar the performance of NIFTY”

As an investor, it’s natural to be attracted to stocks that seem undervalued and present an opportunity for significant gains. Value investing, a strategy focused on identifying stocks that are trading below their intrinsic value, has gained popularity among many investors. However, it’s important to recognize the potential pitfalls of this approach and the importance of having an exit plan.

One prominent example of the challenges faced by value investors is Alibaba Group, a Chinese conglomerate that has seen a significant decline in its stock price since 2020. With the stock dropping from a high of around 315 to nearly 75, investors who saw great value in Alibaba’s price have experienced substantial losses. Even those who entered at 120 have lost almost half of their capital over the past two years.

As the world over has witnessed other stocks rallying, investors stuck in a value stock like Alibaba have not only missed out on potential gains but also endured significant losses . . . .

Reading Time : 3 Minutes

In the fast-paced world of stock markets, it is essential to keep a level head and avoid knee-jerk reactions to market fluctuations. The recent Polycab saga serves as a prime example of how panic selling can lead to significant losses for investors. In this article, we will delve into the details of the Polycab case and discuss the lessons we can learn from it.

The Polycab saga began with allegations of cash sales and corporate governance issues surrounding the company. While no formal notices were received, the market reacted swiftly and beat down the stock on the first day. This initial drop triggered panic among many fund managers, causing them to sell their shares the following morning, resulting in a massive 20% decline.

To gain a better understanding of the timeline of events . . .

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WeekendInvesting Daily Bytes

Despite the market attempting to make a comeback and not accepting the bearish trend, the Nifty index has been indecisive in terms of its movement. While there have been attempts to cross the resistance level near 21,500, the market has been sliding towards the support level around 21,200 before recovering back to 21,350. Currently, the range between 20,900 – 21,500 is considered the support and resistance zone for the market.

If the Nifty index manages to surpass the resistance level of 21,500, it is likely that . . . .

Reading Time : 3 Minutes