- Nifty back below MA(100) while MA(100) remains below MA(200) - Both suggesting to remain cautious as further downside is possible
- McClellan Index well below EMA(59), however it is flat for now - By remaining flat, it is suggesting that equal number of stocks are advancing compared to declining on cumulative basis
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then watch if market can sustain this rally. No need to rush to start SIP unless we get positive trend reversal signs. If in cash/ FDs/ liquid funds then it is wise to stay on sidelines.
- 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 vulnerable hence be cautious...