Market appears to be in pullback mode after a huge rally which we were expecting for sometime now, Isn't it! Hence this should NOT be a surprise for us. Election results are still two weeks away, what shall we expect for next two weeks?
Not much has changed in below chart and all signs are bullish so far.
Pullback is very visible in below Nifty daily chart, but how far will this pullback go? Nifty may find support near MA(50), however this might be a slow grinding process.
TOP tails on the weekly bar suggest pullback in near term as we can see on below weekly chart. A severe pullback can take Nifty back to 6300-6400 area while a minor pullback can be a sideways action with a slow grind.
Remember, election results can have HUGE impact on the market. Market can swing up to 1000 points as soon as results are out. So its up to us to decide how much risk are we willing to take! OR simply wait till the results are out and then take appropriate investment action.
What does it mean for our Investments?
Market remains bullish however in pullback mode...
What does it mean for our Investments?
- Mutual Funds - If invested in equities then stay put but be cautious. If in liquid funds or FDs then stay put until election results are out.
- Stocks - ONLY invest in strong pattern and DO NOT forget to have STOP LIMIT. Check out our watch list and trade sizing calculator.
Market remains bullish however in pullback mode...