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For most of us, spreading your money across different baskets is the best way to protect and grow your money.

The Nifty50 index remained within a narrow trading range, and closed with a slight gain of 29.30 points on a weekly basis, despite flirting with important resistance zones. Weak market breadth and the very low level of the India VIX are delaying an otherwise imminent breakout, and if the breakout occurs in these conditions, a questionable rally is expected. The RRG analysis shows Nifty Consumption, Auto, and MidCap 100 indices are inside the leading quadrant and may outperform broader markets, while Nifty Financial Services and BankNifty have shifted to the weakening quadrant.

As far as the IT sector is concerned, much of the underperformance is over. If you notice the trajectory of most IT companies, they have fallen quite a bit in the last one odd year. In fact, even the quarter four results and the guidance that has come out of the quarter four results have been particularly poor. And that said, we always have to weigh the outlook with the underlying valuations of the company.

At a time when equity markets are under pressure ahead of US & India inflation data, MarketSmith has a positive view on some stocks that it believes are near the buy point.

Indian hotel companies have been enjoying a winning streak on the stock market, with share prices of major players up by over 50% in the past year. Boosted by domestic leisure and corporate travel, international travel, sports tournaments and the recent G20 summit in India, the demand outlook is encouraging for further growth. Optimistic hoteliers have added more rooms to match the demand, resulting in a surge in occupancy rates. The aviation sector has also reported great results, with healthy growth potential ahead. Investors are advised to look to quality names within the theme, with the stock prices already factoring in a fast recovery.

Long Straddle and Long Strangle are option buying strategies used by traders in unpredictable events such as election results or company AGMs. For a long straddle, they buy an at-the-money call and an at-the-money put together, making a profit in a heavily rising or falling market. A long strangle, however, uses out-of-the-money options instead. The opposite of these strategies is a short straddle, selling at-the-money call and put to benefit only when the market is flat. It requires more capital and can be riskier than the long strategies.

In the past, Indian citizens preferred traditional saving options due to the high-risk perception of the equity market. But with the shift in technology and financial literacy coupled with low-interest rates, people started viewing the stock market as a way to earn a passive income. The COVID-19 pandemic has resulted in many entering the market for the first time and subsequently aiming to become a professional trader. To achieve this, individuals must gain a comprehensive understanding of financial markets, gain practical experience, create a trading plan, practice risk management, continuously learn, and have patience. Algo trading is fast becoming a popular trading mode but requires familiarity with programming languages like Python.

The Q4FY23 results were slightly better than expected, with the Nifty50 index showing 15% YoY earnings growth and the broader market seeing approximately 10% growth. Financials and auto enjoyed the most significant upgrades, while IT, pharma, and metals experienced downside. The Indian economy witnessed a real GDP growth rate of 7.2% in FY23 with the market expecting better corporate profit performance in FY24, despite a projected slowdown. Companies with stable domestic demand and those oriented towards the domestic market are likely to benefit the most, with value-oriented investments and stock-specific approaches recommended.

Gold closed the week at $1,960.88 with a gain of 0.70%. Two-year US yields rose by almost 2% while ten-year yields increased by 1.11%. The US weekly jobless claims rose by 28,000 jobs to 261,000 jobs, the highest level reached in almost six years, sparking recession concerns. The US ISM non-manufacturing report for May also disappointed on multiple fronts. The US Federal Reserve indicated it will skip a rate hike at its June FOMC meeting. The Bank of Canada and the Reserve Bank of Australia unexpectedly hiked rates against market consensus, and the Swiss National Bank also issued an inflation warning.

Several online bond platforms in India are considering creating an industry association similar to the Association of Mutual Funds in India, after a request from the Securities and Exchange Board of India. The association would help address industry issues and grievances. IndiaBonds, GoldenPi and The Fixed Income and Bond Bazar are among the regulators currently recognized. Retail interest in online bond investing has grown since Sebi reduced the face value of debt securities issued in private placements to INR 1 lakh from INR 10 lakh. The regulatory body has also implemented new rules around transparency, settlements, redressal mechanisms and offerings.