We hope that many of you got on this BULL train as suggested multiple times in past couple of months, however for those who missed it, When is the right time to hop on this train? Will this train have any stations so others can join the ride?
Below chart provides a very key peace of information:
- McClellan summation index has dropped below EMA(59) - Ideally this could be a caution signal but here it is NOT, WHY? If you have read through "Reading Sensex" section then you already know the answer.
- NIfty is well above MA(100) while MA(100) is well above MA(200) - Suggesting bullish bias and hence #1 above is nullified.
Watch how Nifty daily chart shows that Nifty has managed to stay above MA(50) and maintains a constant distance from Jan of this year. At some point, the gravitational pull of MA(50) will intervene and market will either undergo pullback or flash crash or extended sideways action to catch up with MA(50) or even MA(100). This will be the station everyone should look out for to hop on the BULL train.
Weekly chart shows that market is currently in overbought territory and might need a breather.
Charts suggest bullish bias but that does not mean we can simply hop on the BULL train. Always analyze risk to reward ratio, getting in at low risk can deliver great rewards. This rally has just started and has potential to go up to 12000 followed by 15000 and even upto 18000 if gets into high gear bubble zone. Wait patiently for better entry if you missed the BULL train but if you have to get in then SIP is the best way to avoid collateral damage.
Market remains bullish, enjoy the ride...
Market remains bullish, enjoy the ride...