check which droped max drop? by 2.30pm
https://www.nseindia.com/index-tracker/NIFTY%20SMLCAP%2050
ChatGPT said:
To execute your strategy — buying mutual funds in the category (Nifty 50, Midcap, or Smallcap) that has dropped the most by 2:30 PM, here's a practical and reliable step-by-step method:
✅ Step-by-Step Guide to Track & Buy the Right Mutual Fund:
🔍 1. Track Intraday Index Drops
Use the NSE India website and look at these indices from the dropdown (as in your screenshot):
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NIFTY 50
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NIFTY MIDCAP 50 / 100 / 150
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NIFTY SMALLCAP 50
🕝 At 2:30 PM:
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Check the percentage drop (or gain) shown next to each index.
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For example, if:
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NIFTY 50 = -0.30%
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NIFTY MIDCAP = -1.20%
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NIFTY SMALLCAP = -2.05%
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Then, NIFTY SMALLCAP has the largest drop.
📥 2. Select the Mutual Fund
Based on the largest drop, pick a mutual fund in that category:
| Index Category | Sample Mutual Fund (Direct-Growth) |
|---|---|
| Nifty 50 | UTI Nifty 50 Index Fund |
| Nifty Midcap 150 | Motilal Oswal Midcap 150 Index Fund |
| Nifty Smallcap 250 | Nippon India Smallcap Fund |
✅ Choose Direct - Growth for best compounding benefits and low expense ratio.
💸 3. Place MF Order Before Cut-Off Time
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Most mutual funds follow same-day NAV if the order is placed before 3 PM (on business days).
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So, make sure you complete your purchase before 2:55 PM on platforms like:
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Zerodha Coin
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Groww
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Paytm Money
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AMC websites (e.g., Nippon, UTI, etc.)
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🔄 Automate Daily?
You can make a habit of checking around 2:20–2:30 PM, pick the index with the worst drop, and buy that category's MF. Over time, this lets you benefit from "buy-the-dip" behavior in a systematic way.
🧠 Pro Tip:
Create a Google Sheet or simple note to track:
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Daily 2:30 PM drop % for Nifty 50, Midcap, Smallcap
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Your MF purchase category and amount
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Later track returns on dips vs. SIP to compare performance
Would you like an Excel/Google Sheet template or code (Python/Excel Macro) to automate checking and logging drop % from NSE?
You said:
ChatGPT said:
Your plan of investing in mutual funds based on intraday index drop by 2:30 PM is interesting and opportunistic, but let's analyze its pros and cons and suggest improvements if needed:
✅ What's Good About Your Plan
1. Buy the Dip Strategy
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You are investing when an index (Nifty 50 / Midcap / Smallcap) has dropped — this helps avoid emotional buying at market highs.
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You get lower NAV, increasing units allocated.
2. Diversification by Opportunity
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You're not locking yourself to one index (e.g., Nifty 50 only). Based on which category drops, you diversify across large-, mid-, and small-cap funds.
3. Same-Day NAV Capture
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Placing the order before 3 PM ensures you get the day’s NAV — so you’re tactically making use of the dip.
❗️Risks & Limitations
1. Short-Term Noise
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Intraday drops (especially by 2:30 PM) are often due to short-term market sentiment or global cues. These might not reflect true value or opportunity.
2. High Volatility in Mid/Small Caps
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If you're frequently buying smallcap on dips, your portfolio can become skewed toward high-risk assets.
3. No Fundamental Basis
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You're buying based on price movement, not valuation or long-term growth potential. Timing alone isn’t always effective.
4. Overtrading Risk
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Investing daily/weekly based on drop can lead to over-diversification (small units in many places), harder to track and manage.
🔧 Suggested Modification to Improve the Strategy
✅ Modified Smart-Dip Strategy
| Feature | Original | Improved Plan |
|---|---|---|
| Timing | 2:30 PM check | Keep 2:30 PM check |
| Trigger | Max drop among Nifty50/Midcap/Smallcap | Only invest if drop is >1% |
| Frequency | Daily or any day | Limit to max 2 times/week |
| Fund Mix | Based on drop | Stick to 2–3 chosen MFs: one each in Nifty 50, Midcap, Smallcap |
| Amount | Full amount in one | Use fixed amount (e.g., ₹5,000 per dip) |
| Fallback | No drop = no buy | Optional: SIP on no-drop days |
📈 Sample Execution Plan
| Day | Drop % | Fund Chosen | Invested |
|---|---|---|---|
| Mon | -1.2% (Midcap) | Motilal Midcap 150 | ₹5,000 |
| Wed | -1.6% (Smallcap) | Nippon Smallcap | ₹5,000 |
| Fri | No major drop | No action (or Nifty 50 SIP ₹3,000) |
🧠 Final Advice
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✅ Continue this strategy — it’s better than emotional investing or blind SIPs.
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🔄 But use disciplined entry triggers (e.g., >1% drop).
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🧰 Keep tools like Excel sheet / Groww portfolio / ValueResearch MF tracker to monitor your fund weightage.
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🛑 If markets are falling for structural reasons (e.g., recession fears), avoid catching every dip — look at long-term trend too.
