- Nifty crossing MA(100), however MA(100) remains below MA(200) - As we can see, Nifty is barely crossing MA(100) which is the 1st positive sign if this trend will be reversed. It will take some time for MA(100) to climb above MA(200). Nifty absolutely needs to remain above MA(100) for a successful trend reversal.
- McClellan Index well below EMA(59), however it appears to be flat - Suggesting that although more stocks are declining compared to advancing, we might find balance soon as the index is flattening out.
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then watch if market can sustain this rally. No reason to continue SIP at this point unless we get some confirmation. If in cash/ FDs/ liquid funds then it is wise to wait for next low risk entry.
- 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 remains bearish, stay cautious...