Samriddhi strategy has gained 3.1% in the month of April. The strategy is more conservative in its approach & consists of mostly Large Caps.
There were only 3 transactions in Samriddhi strategy for April month. 30% of the strategy was already invested in IT stocks, had observed the IT index’s Relative Momentum sliding down, but didn’t expect such a drastic downside. Will likely Re-balance this strategy more aggressively in the near future.
Re-balance updates for April: Samriddhi
Valuation metrics for Samriddhi. Notice the High Dividend Yield% in this strategy stocks?! The selection of High Dividend stocks are not due to intention, but rather due to Relative Momentum.
Individual Stock analysis
CUMMINSIND: consistent performer. Might be entering Stage-3: Keeping a lookout for same.CYIENT: no signs of stopping. Alpha stock of the strategy. Looking great for a long innings.DALBHARAT: classical breakout and re-test done. Delivery% peaking. On trend-line support of Rel MOM indicator. Don’t see any reason why this shouldn’t move up!HCLTECH: has weakened more than expected. Puzzled with this one & in two minds. Will check if better stock exists to replace this.KALYANKJIL: one of the classic mistakes of Momentum/Swing Investor is mixing Fundamentals & Technicals together. It’s evident here. I like the fundamentals, but Technicals are degrading steadily. Have to act. Soon.ONGC: Relative Momentum (Rel MOM) is young. Dividend Yield = 11%. Everything seems ok. PFC: looking extremely Bullish. My first entry wasn’t at the best R/R. Div yld = 7%. PE = 3; Low PE not necessarily good always, beware!. Have high expectations on this one.RECLTD: this is PFC’s cousin! RECLTD’s majority shareholder (52%) is PFC. Div yld = 12.4%. PE = 3.3, Low PE not always good. Excellent Rel MOM. Just enjoying the ride up.TECHM: fell due to IT index weakness, was looking good when I bought. Might replace this with stronger stock.ULTRACEMCO: looks very similar to DALBHARAT, both cement companies, both doing well. It’s easy to ride stocks from the same sector, provided there are sector tail winds.
Will be giving a re-balance for the strategy later in the day. Will try and do a quick analysis of the Market breadth if time permits.
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