- 2015 June
- 2016 January
- Next support is near 7200 area which we believe is easily achievable
- However in a complete panic moment, this market can touch 6200-6800 area, which in turn might become the ultimate BUY opportunity, BUT WHY? At that point, panic will already be visible and no one would want to touch the markets. This is precisely the kind of opportunity a long term investor should look for to buy blue chip companies such as listed in Nifty 50 index or Sensex index. But why won't the markets drop below that level? They can, however that level has a significant strong support
- The key is to look for right indicators which will tell us that this market is turning around. Market needs to show some strength which can be identified from McClellan Index (early sign) followed by moving above MA(100) which will be our confirmation
- Use this time to research and identify potential candidates which can be next winners once the bottom is in
What does it mean for our Investments for now?
- Mutual Funds - If still invested in equities then time to hold onto this roller coaster ride, exiting now will be very expensive and painful. No need to rush to start SIP unless we get positive trend reversal sign. 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 firmly bearish, get out of the way.