- Nifty is still below MA(100) and MA(100) below MA(200) - Both suggesting market is in correction mode
- McClellan Index moved above EMA(59) while EMA(59) still below MA(100) - Suggesting more stocks are advancing than declining in cumulative manner, which should drive this market higher at some point
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then time to hold on as turn around appears to be coming. No need to rush to start SIP unless we get positive trend reversal signs. If in cash/ FDs/ liquid funds then it is wise to stay on sidelines.
- Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. When market is in correction, it will drag everything down with it. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.
Market continues to establish base...