Market managed to hold on to support at MA(50) and attempting for another rally. BUT is there any more juice left in this rally!!! What should we be prepared for in case the rally fizzles out?
No change in below chart:
- Nifty has managed to stay above MA(100) while MA(100) remains above MA(200) - giving benefit of doubt to BULLs
- McClellan index continue to drop and well below EMA(59) - suggesting more stocks are declining than advancing
If you were looking for low risk entry than last day of the week was the right time to get in with a STOP below 8150-ish area.
Market is moving in a channel which is very evident from the weekly chat below. Although RSI is showing divergence, it has managed to stay above 50 mark giving benefit of doubt to BULLs. MACD and PPO, both are showing divergences as market is moving in up trend which remains a sign of concern.
In short, benefit of doubt goes to BULLs for now but how far will it last!!! Never take markets for granted and remain cautious when we see subtle signs of danger.
What does it mean for our Investments?
Market Bulls get benefit of doubt for now...
What does it mean for our Investments?
- Mutual Funds - Continue to remain invested in equity funds and no reason to stop SIP. For those trying to find low risk entry then last day of the week was your best bet, of-course do not forget STOP LIMIT. If still in cash/FDs/liquid funds then no need to worry, a better low risk entry will present itself in future.
- Stocks - ONLY invest in strong patterns with good risk management using our trade size calculator. You may also want to check our potential buy candidates list.
Market Bulls get benefit of doubt for now...