Market managed to bounce back hard and currently at NEW HIGH. It appears like market is cruising higher month after month BUT what you gonna do?
Observation:
- Look at Nifty which has bounced back from MA(100) for three times now - We can conclude that any time Nifty is close to MA(100), it is the low risk entry as long as Nifty continues to bounce back
- McClellan Index continues to drop for many months now - This by itself does not imply that market will drop as well but it does suggest to remain cautious
Market appears to be in full control as it moves from one end of the channel to other swiftly as can be seen from the daily Nifty chart below.
Do not be surprised if market breaks the channel on upside and goes parabolic.
As market makes NEW HIGH, the temptation/greed to get in the market gets stronger and the fear of loosing further upside also becomes stronger. Most people end up entering market at wrong time only to realize that they have been trapped at higher prices. The key is to understand low risk entry and appropriate timing.
What does it mean for our Investments?
Market remains in strong bullish trend...
What does it mean for our Investments?
- Mutual Funds - If already invested in the market then enjoy the gains and continue the SIP.
- Stocks - ONLY invest in stocks with good patterns and DO NOT forget to manage risk appropriately. You might want to check out our trade size calculator along with our watch list of potential buy candidates.
Market remains in strong bullish trend...