- Nifty dropped below MA(100) - NOT a good sign, however MA(100) is still above MA(200)
- McClellan Index is turning - Are these early signs of trend change! However, McClellan index is well above EMA(59) and MA(100) for now.
What does it mean for our Investments?
- Mutual Funds - Get out of equity funds if market drops below 6000 level. If invested in debt/bond funds then stay put but DO NOT take a loss more than 8-10%, remember you can always get out with a small loss. Best course of action might be to stay invested in FDs/liquid funds or cash.
- Stocks - ONLY invest in strong patterns and DO NOT forget STOP LIMIT, check our watch list here.
Market finding hard to maintain course, be cautious...