Market continues to stay near HIGHs and NO signs of slowing down. BUT as we suggested earlier, do not get complacent and cozy. Now that market is in bullish trend, Is it the right time to enter? Whats your assessment!!!
Not much has changed in below chart and all signs remain bullish:
- Nifty well above MA(100) while MA(100) well above MA(200) suggesting bullish bias
- McClellan Index above EMA(59), however appears to be flattening suggesting caution
Nifty had a swallow pullback last week and is back again near recent HIGHs
On weekly chart, Nifty continues to remain above WMA(10) which is also bullish.
Charts support bullish bias, however opening new positions now is not advisable BUT WHY? Any time, we open a new position, it should precede with identification of STOP LIMIT. In current scenario, the STOP will be far off and is not worth the risk at this juncture. However, if market consolidates near current level then it will form a base providing another low risk entry.
What does it mean for our Investments?
Market remains bullish and no signs of danger for now...
What does it mean for our Investments?
- Mutual Funds - If invested in equities then enjoy the gains, also continue with SIP plan if already in such a scheme. If in cash/FDs/Liquid funds then stay put and wait for next low risk entry.
- Stocks - ONLY invest in good patterns as not many stocks are showing low risk entry. Check out our watch list, some of the candidates have performed very well. Also do not forget to manage risk using trade size calculator.
Market remains bullish and no signs of danger for now...