Market is near ALL TIME HIGH and currently in consolidation mode. Can it sustain this momentum or will it stall until election results are out!!! What shall we expect from this news driven market and global political issues?
Below chart remains bullish, WHY?
- Nifty is well above MA(100) and MA(100) is above MA(200)
- McClellan Index remains above EMA(59) and MA(100), also it has changed from flattening to inching higher
On daily chart below, it can be seen that Nifty broke above resistance zone and currently consolidating in narrow range. This could possibly forming a bullish flag for further higher move.
Not much has changed on weekly chart since the breakout of resistance zone.
DO NOT get tempted to enter the markets now as its too risky at this time, WHY?
What does it mean for our Investments?
Market remains bullish for now....
- Elections results will be out in two months and market will react to every news that comes out, the more closer we get to results expect higher volatility
- Ukraine issue can explode into something major there by adding further to volatility
What does it mean for our Investments?
- Mutual Funds - If not invested in markets then remain in liquid funds or FDs or cash until elections are out of the way. If invested in markets then stay put until we see signs of danger.
- Stocks - ONLY invest in good patterns and DO NOT forget to have STOP LIMIT in place.
Market remains bullish for now....