- Nifty still below MA(100) while MA(100) trending below MA(200) - suggesting to observe caution, Nifty needs to get above MA(100) for this correction to be considered as over
- McClellan Index well below EMA(59) - suggesting more stocks are declining than advancing on cumulatively basis
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then watch if market can sustain this rally. No reason to continue SIP at this point unless we get some confirmation. If in cash/ FDs/ liquid funds then it is wise to wait for next low risk entry.
- 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 still bearish, stay cautious...