- Nifty dropped below MA(200) - This is NOT a good sign and could lead to further damage
- McClellan Index is flat but below EMA(59) while both EMA(59) and MA(100) are in downtrend - NOT very encouraging
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then you probably don't have a choice but to stay invested and ride the correction, be patient. But it would be wise to STOP SIP for now until market stabilizes. If in cash/FDs/liquid funds then wait for next robust opportunity.
- 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 is in correction stay on sidelines...