- Nifty has dropped below MA(100) which is NOT a good sign, yet has managed to stay above MA(200) so far suggesting to be cautious
- McClellan Index has flattened out which also suggest to be cautious
What does it mean for our Investment?
- Mutual Funds - It might be wise to remain in liquid funds, FDs, cash for now until we get a clear market direction. If invested in equities then be ready to pull the plug as soon as market starts dropping below current levels. If invested in debt/bonds then keep a watch on them and DO NOT take a loss more than 8-10% if things go south.
- Stocks - ONLY invest in strong pattern and DO NOT forget to have STOP LIMIT in place. You might like our watch list candidates which can be viewed here.
Market in staging zone suggesting to be cautious...