- Nifty barely hanging above MA(100) and MA(200) while MA(100) is below MA(200) - suggesting caution as MA(100) is below MA(200) which is NOT a good sign and often leads to corrective move.
- McClellan Index is above EMA(59) - suggesting more stocks are advancing compared to declining in cumulative manner which is a good sign especially if this market decides to turn around to upside.
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then stay invested as market might be turning around. If in cash/ FDs/ liquid funds then the low risk entry was near MA(50), however the risk is elevated and one needs to be ready to pull the plug.
- 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 trying to turn around yet telling us to be cautious...