Market is making All Time High every week and as expected came very close to our target zone. Election results are a month away, which shall add to more volatility. Is this the right time to get in the markets!!!
Not much has changed in below chart, market appears to be bullish and no signs of danger are in sight for now.
It is very evident from below daily Nifty chart that market made a very strong move from mid February till date taking it from 6000 to 6790 area. BUT will it continue to rise in coming weeks!!!
On weekly chart, we can clearly see that market is approaching its TOP of the current trend channel which would suggest that a pullback or sideways action in near term.
We expect this market to get more volatile as we get closer to election date & results. In other words market shall experience sideways, zig-zag move OR pullback to earlier support near 6400 area. We still have a month to go, hence expect lot of drama.
What does it mean for our Investments?
Market continue to be in bullish trend for now...
What does it mean for our Investments?
- Mutual Funds - If invested in market then stay put as market continues to show bullish signs. If invested in debt/bond funds then remain invested but DO NOT take a loss more than 8-10%. If in cash/liquid funds/FDs then stay put, NO need to jump into markets especially when we expect lot of volatility ahead of us, have patience and wait for right opportunity.
- Stocks/ETFs - ONLY invest in strong patterns and DO NOT forget to have STOP LIMIT in place. You may want to check out our new position sizing spreadsheet as well as Watch List.
Market continue to be in bullish trend for now...