- Nifty is well above MA(100) as well as MA(100) remains above MA(200) suggesting bullish trend for now
- McClellan Index is inching higher as well as remains above EMA(59) also suggesting slightly more stocks are advancing than declining
Lets talk about some scenarios:
- Market continues its current path and BJP comes into power - This scenario will be extremely BULLISH and we might see the start of NEXT extreme BULL market, so should we get in now!!! TOO much risk ahead of elections especially if you are NOT already in the market. Don't worry of loosing BULL rally, at some point this market will correct and that will be our opportunity to get in, hence DO NOT chase this market.
- Market continues its current path and we get a coalition government - Very confusing period which will weigh on the market and drag it down in zig-zag manner.
What does it mean for our Investments?
- Mutual Funds - If invested in equities then stay put until we see signs of danger. If in liquid funds then have patience and wait for right opportunity. If in debt/bond funds then remain invested, however DO NOT take a loss more than 8-10%.
- Stocks - ONLY invest in strong patterns with good earnings and DO NOT forget to have STOP LIMIT in place.
Market remains in bullish trend for now...