- Nifty barely above MA(200) yet remaining below MA(100), MA(100) & MA(200) appears to be converging - suggesting a roll over in days/weeks ahead.
- McClellan Index appears to have changed the direction and is above EMA(59) & MA(100) - suggesting more stocks are advancing than declining in cumulative manner over days.
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then stay invested and ride the correction which could take a while, be patient. But it would be wise to STOP SIP for now until market stabilizes. If in cash/ FDs/ liquid funds then wait for next robust opportunity, NO need to hurry.
- Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. When market is in correction, it will drag everything down with it. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.
Market still in correction mode hence be cautious...