Diwali hype is over and market is back in the range as expected. This shall NOT be a surprise to readers of this blog. Market may continue to be in the range until election results of 2014 are declared. What shall we expect next!!!
McClellan Index continues to rise suggesting more and more stocks are advancing, however Nifty could not manage to break through the resistance zone and is back in the range. Also MA(100) appears to be moving above MA(200) which can be considered as good sign.
Daily chart below is not very encouraging, Nifty is back in the range and could not hold the MA(50) support.
Based on below weekly chart, current scenario appears to be weak and market may move down further.
As expected, market was rejected at NEW HIGHs and is back in the BIG range. Smart money is waiting for BIG decision which will be election results and still have 6 months. It will NOT be a surprise if market remains between 5400-6400 range till then.
What does it mean for our investments?
Market remains in holding pattern, be cautious...
What does it mean for our investments?
- Mutual Funds - If invested in Equities then you might want to reconsider. Staying in cash/FDs/Liquid Funds might be much better option. If invested in Debt funds then be careful and do not take a loss more than 8-10%,
- Stocks - ONLY invest in strong patterns with STOP LIMIT in place.
Market remains in holding pattern, be cautious...