After making a ALL TIME HIGH, market appears to be taking a breather as expected. It is very tempting to get in the market when it is making NEW HIGH every other week. Will you enter this market now!!!
Not much has changed in below chart:
- Nifty above MA(100) and MA(100) above MA(200), all trending higher - suggest bullish action
- McClellan Index below EMA(59) and EMA(59) below MA(100), all trending flat - suggests being cautious but gives benefit of doubt to bulls
Market consolidation near HIGHs is visible in below daily Nifty chart.
Weekly chart also suggesting bullish action, however the farther the market from WMA(10) the higher the risk.
It is very well possible that market goes higher from here but the risk also goes up. Hence it is advisable to wait for low risk entry for opening new positions.
What does it mean for our Investments?
Market remains in strong bullish trend...
What does it mean for our Investments?
- Mutual Funds - Stay invested in equities if already in the market and same would apply for SIP. If in cash/liquid funds/FDs then wait for low risk entry and have patience.
- Stocks - ONLY invest in strong convincing patterns and always have a STOP LIMIT in place. Use our trade size calculator to manage risk and also check out our watch list for potential BUY candidates.
Market remains in strong bullish trend...