Not much has changed from last week, market continues to make new HIGHs or stays near it. That raises the question, how long can this go on without a meaningful correction!!! What is your guess?
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If you are a regular reader of this blog then how about you take a shot at understanding below charts and come with your own conclusions!!! Read our conclusions at the end of each chart and see if it matches yours....
If you are a regular reader of this blog then how about you take a shot at understanding below charts and come with your own conclusions!!! Read our conclusions at the end of each chart and see if it matches yours....
No surprises in above chart:
- Nifty well above MA(100), MA(100) well above MA(200) & all are trending higher suggesting strong bullish bias
- McClellan Index well above EMA(59) and appears to be flattening suggesting to be cautious
Above Nifty daily chart remains very bullish as Nifty is well above MA(50), no need to worry here.
Weekly Nifty chart also remains bullish, however the farther Nifty is stretched from WMA(10) the higher the probability of pullback or sideways action. Nothing to worry about for now but lets keep that at back of our mind. So is this the right time to enter? absolutely NOT but WHY? Ask yourself if this is low risk entry? If you don't know, how to define low risk entry then read past blog post and you shall have your answer.
What does it mean for our Investments?
Market showing strong bullish bias for now...
What does it mean for our Investments?
- Mutual Funds - Continue to remain invested in equities along with SIP as we do not see any signs of danger for now, however opening new positions now is not a wise idea. If in FDs/liquid funds/cash then stay put and wait for next low risk entry.
- Stocks - Only invest in strong patterns with good earnings guidance. Many of our picks have done well which you can check out in our watch list here and also do not forget to use trade size calculator to manage your risk.
Market showing strong bullish bias for now...