- Nifty below MA(100), yet remains above MA(200) - suggests that its time to be very cautious
- McClellan Index remains below EMA(59), however it is flat - suggests that number of stocks advancing compared to declining remains in close proximity
What does it mean for our Investments?
- Mutual Funds - If already invested in equities then it might be decision time. Unless you want to ride the storm, its better to stay on the sidelines and even stop SIP for now. BUT if you have long term horizon then stay invested. If in cash/FDs/liquid funds then wait for market to stabilize.
- Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.
Market tide appears to be changing, remain very cautious....