Market continues to climb in these uncertain times and appears to be on a roll. So what do we do if we missed the train! Should we jump right now? What shall we expect and be prepared for? Let's take a look at charts...
All signs point to strong bullish bias in below chart.
Market appears to be overbought based on daily Nifty chart below, MACD is on verge of making new high but not there yet! PPO is stuck in a range. Most probable scenario would be a range bound action or pullback towards MA(50) in near term.
Market appears to be heading into resistance near 8600 area and also appears to be overbought in near term.
Based on the charts, it shall not come as a surprise if market starts going sideways and becomes range bound for couple weeks. We do believe that at some point we shall start seeing divergence on weekly chart and market will have a meaningful pullback, however it might take a while before we get there. For now enjoy the rally, jumping now does not provide a good risk-to-reward ratio. But if you are doing SIP then continue to do so.
Market continues to remain bullish...
Market continues to remain bullish...