Buying the Corona Dip – 6 (Crypto Special)

My last update was on Sep-20, since then Nifty & Bank-Nifty have rocketed to 14347 & 32084.

I had in my previous update said, that I wasn’t comfortable with Nifty moving up without correcting, and luckily after that post nifty went down by 700 points where I got in and deployed my full capital in both of the Portfolios.

I had also mentioned about how I liked Banknifty setting up, and went heavily long in it and since then it has returned 48% in less than 3 months’ time.

My primary portfolio (will be referred as P-1) after the changes have delivered ~60% returns. It would have been much higher but I booked out profits on a lot of stocks and entered many new ones. Currently, after churning up the portfolio with new entries and increased exposure, my return since march (realized profit and adding it back) has been 109%.

Details about both Portfolios:

Following are the changes that I have made in P-1:

New entries:

L&T, Mazdock, BCG, NTPC, Chemcon, Adaniports, UTIAMC, Torrent Power, Happstminds, IEX,

Pyramided (increased allocation):

Indigo, Sunpharma, Trident, Airtel, ITC, ONGC

Highest returns:

  1. Trident – 173%
  2. Glenmark – 172%
  3. Spicejet – 149%
  4. Wipro – 147%
  5. CDSL – 134%
  6. Axisbank – 123%
  7. Tatasteel – 120%
  8. Deltacorp – 114%
  9. Cipla – 113%

Below is the detailed snapshot of the portfolio:

Portfolio – 2

I began this portfolio on June-2020, Since then unrealized returns stands at 23% but overall (after taking out profit from 30% of total investment) is at 38%.

This portfolio basically incorporates momentum play and it is churned quite often according to my system.

Below is the snapshot of P2.

Stocks with highest returns in P2:

  1. JSW STEEL – 100%
  2. Titan – 92%
  3. Tatasteel – 89%
  4. CDSL – 80%
  5. Trident – 77%
  6. HDFC – 70%

Talking about Cryptocurrencies, they have delivered stupendous returns in short span of time. I do not actively engage with them but I had made some investments earlier via Binance. My major holding in crypto are

  1. BTC (Bitcoin) – 36.21%
  2. ETH (Ethereum) – 32.15%
  3. BNB (Binance Coin) – 26.5%
  4. Others – 5.15%

I do not per se, have any system on Cryptocurrencies but I am never to shy away from an opportunity as and when they present themselves, for additional alpha. My investments in cryptos is not much when compared to both my portfolios & trading capital (~6%).

Cryptos, I believe are hyper risk asset class (if they are) and I am not sure what they represent any more. However, FOMO in cryptos are very real and many whales are taking concentrated bets. I think in the end, there’s a very high chance it will turn out to be a pump and dump scheme but who knows if BTC could actually move past 100k $. In markets nobody knows when the craziness is coming to an end.

My crypto portfolio have returned 300%+ return since July-2020 till date.

Road Ahead:

If one is too see the global scenario, not all markets have done well compared to India, US etc. European markets have still not recovered from March-lows. They are yet to deliver positive returns. London is still 10% down.

Whereas, India’s rally has been more of a liquidity driven than fundamentals.

Recently, MSCI have decided to remove 3 telecom companies of China from their index, which lead to 14 bn $ erosion in a day as investors rushed to sell the 3 companies. This could trigger additional inflows in Indian equities especially blue chip companies like Reliance, Infosys, TCS, etc. The additional inflow could be in tune of over 300 million $.

That would catapult Indian market further more.

If you see, the crashes since 1900s are becoming less frequent (earlier every 8 years), more violent and recovering way faster. This is due to the fact, that feds are becoming better in handling the money.

I do not know where the market is headed from here, but I strongly feel present market is totally buy on dips and if one has 5-7 years investment timeframe, then one should certainly get in the game with every dip. This is a young bull run, there might be some months of sideways swings, but in couple of years we could actually witness one of the biggest bull runs of our times.

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