- Nifty well above MA(100), MA(100) well above MA(200) and all trending upwards
- McClellan Index well above EMA(59) and trending upwards
- Should we enter in this market now?
- How far do we think this rally can keep going?
Now from a different perspective take a look at below monthly Nifty chart:
Remember, a steep rally has a power to take any market up from 50% to 100% within matter of 8-15 months. It will NOT be a surprise if this market continues on this path and goes up to 9000 area in next 6 months. It is very bold statement yet very enticing to jump in this market, Isn't it!!! So what should we do?
If we simply cannot wait and we have to get in the game then the 1st thing to do is to SET a STOP LIMIT which means if the market takes a U-turn then we will NOT incur substantial losses. Also we can start investing through SIP. If we can wait and have patience (harder to implement) then we would like to see some consolidation or pullback on monthly chart. But it might be a while before we see some consolidation/pullback and might have to give up some gains for now.
What does it mean for our Investments?
- Mutual Funds - If invested then enjoy the gains, you may also might want to add to your position or start SIP. If NOT invested then consider starting SIP or invest say 10-25% to test waters. If you have patience then wait for the monthly consolidation but then you might miss some part of the rally.
- Stocks - ONLY invest in strong patterns, make sure you have STOP LIMIT in place. You may want to check our trade size calculator here.
Market in strong bullish bias for now....