This is precisely the low risk opportunity we were waiting for months. Anyone who missed the BULL train to get on board in Jan 2017 and in Oct 2017 and again in Dec 2017, this is your last chance. Let's understand whats going on!
Keys things to watch in below chart:
So when do we get in? - have patience and wait for market to establish a bottom, if market drops below MA(100) or MA(200) then no need to panic, simply get back in the game as market crosses above MA(100).
- Nifty remains above MA(100) as of now and both MA(100) & MA(200) continues to trend higher
- McClellan Summation Index has turned lower suggesting more stocks are declining as compared to advancing stocks
So when do we get in? - have patience and wait for market to establish a bottom, if market drops below MA(100) or MA(200) then no need to panic, simply get back in the game as market crosses above MA(100).
Daily Nifty chart displays a band of support zone between MA(50) and MA(100), every time market drops in this range, it re-bounces after tagging MA(100) line. However, this time it might surprise everyone by tagging MA(200) which will flush out the speculators and will provide us with the best low risk buying opportunity.
Weekly Nifty chart is also showing the support band mentioned above. But further downside of up to 9925 (also a support zone) can be anticipated which is the ultimate low risk buying opportunity. Also observe that the divergences are clearly visible at this point.
So what to expect in coming weeks?
Market remains bullish but be cautious in near term.
- Another swift move down should not be surprising, rather get ready to get in the game if market tags MA(200), which shall prove to be the ultimate low risk entry
- Wait for market to form the bottom, no need to jump in a hurry, once the MA(200) is breached briefly, market shall make a V-shape or U-shape recovery making all time highs again
- For investing in mutual funds wait for market to cross MA(100) on upside again for stable entry, otherwise continue SIP
- If market establishes bottom and starts rising above 10700 without breaching MA(200) then that might be our signal to get in, only time will tell
- Use this time to find best stock setups which will make BIG moves once the correction is over
Market remains bullish but be cautious in near term.