Monthly Model Review: Stock Market Analysis

Monthly Snapshot

Uuff!! What a month, after a short consolidation, the stock markets took off like a rocket in the last four trading sessions in June. The Nifty and the Bank Nifty soared to new heights and reached over 19300 and 45,000 levels, respectively. It was a wild ride as the markets experienced a parabolic momentum, resembling a high-speed liftoff.

In the last four trading sessions, the Nifty showed its strength and determination, gaining significant ground and leaving investors in awe. The momentum was simply unstoppable as the Nifty climbed higher and higher.

This impressive surge in the Nifty reflects the underlying confidence and enthusiasm in the market. Investors eagerly embraced the opportunities presented by the soaring index, capitalising on the bullish sentiment and potential for substantial gains.

However, it's essential to exercise caution and remain vigilant amidst such remarkable market movements.

Leaders & Laggards

Regarding unpredictability, the models on Investmint delivered some positive results in such a wild market.

Two of the star performers for June are Quick Short & BackUp, which outperformed the Nifty50 with 14.87% and 11.73%, respectively. Both BackUp and Quick Short are intra-day mean reversion models that tend to capitalise on gaps on an intra-day basis. At the same time, only BTST ended in the red for June with -2.8%.

Apart from this, the two outperforming stocks for June were TITAGARH  & SAKSOFT, with 38.53% and 26.65%, respectively.

On the other hand, the two laggards stocks for the month of June were KRBL & MANAKSIA, with a negative 8.17% and 6.19%, respectively.

Monthly Wrap-up

The Indian stock markets in the month of June could be a classic example of a decisive breakout after a period of consolidation. The Nifty was trading sideways for the first few weeks, with minor ups and downs. It also missed the previous high by a couple of points and then gave a minor correction of around 200 points.

However, Bank Nifty faced a more substantial correction of around 1.3% from the immediate top before bouncing back to make a new lifetime high. The HDFC bank-HDFC merger boosted the index, as the stock shot up by almost 10% during June.

Also, talking about the performance of Nifty, the benchmark has gained more than 10% since March of 2023. However, the Mid-cap and Small-cap index have gained more than 20% each in the same time frame. This could be attributed to the RBI's(Reserve Bank of India) pause in a rate hike and the estimated GDP growth.

The June quarter has also fascinated equity investors, as India topped the charts and became the fastest-growing country in the world regarding market capitalisation.

All thanks to strong inflows from FIIs (Foreign Institutional Investors) and solid macroeconomic fundamentals.

In conclusion, the past month was marked by a remarkable, bullish run, with the Nifty reaching new highs and exhibiting parabolic momentum. Investors rode the wave of optimism and capitalised on the market's upward surge.

As we look ahead, it will be interesting to observe how the market evolves, whether the upward trajectory continues or if a correction may be on the horizon. Regardless, the recent performance of the Nifty serves as a reminder of the dynamic and unpredictable nature of the stock market.

Also, as the deadline for filing your tax returns approaches, it's time to explore the potential benefits of a powerful tax-saving strategy: Check out the blog now!