Market is struggling to break above MA(50), however not yet successful. What should we expect?
Nifty is still below MA(100) and barely above MA(200) suggesting to remain cautious. McClellan Index appears to be turning the trend yet remaining below EMA(59), however if market breaks through MA(50) then McClellan Index might change the trend for real.
New downtrend is shown by dotted lines in below daily Nifty chart. Unless this trend is broken, market will continue to remain in correction.
Not much has changed in below weekly Nifty chart.
The Head-Shoulder pattern mentioned last week is still intact. The strength of this bounce will dictate if market will experience further downside or is this correction behind us!
What does it mean for our Investments?
Market remains in correction hence be cautious...
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then this is your last chance to get out else stay invested and ride the correction which could take a while, be patient. But it would be wise to STOP SIP for now until market stabilizes. If in cash/FDs/liquid funds then wait for next robust opportunity, NO need to hurry.
- 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 remains in correction hence be cautious...