A quiet week for the markets!
Nifty closed up 1.6% at 15163 after hitting an all-time highs at 15257 while the Nifty 500 ended up 1.86% over the previous week!
As we can see in the chart that the rising upper trendline has acted as resistance for the Nifty on many occasions.
This week also Nifty kissed the upper trendline and has formed a narrowest weekly range of just 280 points of the last 6 weeks.
What does it suggest?
Well, I believe there are two scenarios developing!
- As I had mentioned in the previous issue that Nifty might just drift along the upper trendline up to 15500 Or
- It goes into a pullback up to at least 14433.7 below which the trend could deteriorate further somewhere between the recent swing low at 13600 and the rising demand line.
Let’s see where we end up over the next week!
It may have been a quiet week for the markets, but not for the Hybrid Model Portfolio!
The portfolio equity at the end of the week stands at an all-time high at Rs. 2166557.71. Overall, the Hybrid Model Portfolio return stands solid at 57% since inception on 30/06/2020.
In all humbleness, I believe the portfolio performance is outstanding considering…
- The portfolio consists mostly of large & mid-cap stocks.
- It’s the blend between momentum & low-volatility.
- I’ve been raising the cash levels since October 2020.
- The performance really improved after I made a little tweak in the exit strategy as I was getting out of winners quickly. BTW, the below tweet inspired me to look closely at my exit strategy!
Markets have been kind so far!
Here’s the real-time snapshot of the actual 10 stock model portfolio established based on the DYR Hybrid Strategy. The Hybrid Strategy is the combination of Dual Momentum Monthly Rotational Strategy and Mean Reversion Long/Short strategies applied together.
Adani Enterprises is the fourth stock to have risen more than 100% since the start of the model portfolio.
The cash as a % of the overall portfolio stands at 17.75% which I want to increase to around 20% going forward.
Let’s see how we fare over the next week.
Have a great weekend!