Market is trying to hold current level but finding it quite difficult. How long will it hold onto current level before it breaks down or breaks out!!! What shall we expect in near term?
Nifty is below MA(100) and barely holding above MA(200) suggesting to be cautious. Also McClellan Index appears to be flattening which suggests that market may run out of steam.
Below chart clearly shows that Nifty is barely hanging onto MA(200) and break below that level will be bearish. However if at all Nifty bounces back then it might get trapped between MA(50) and MA(200). ONLY time will tell...
Not much has changed on weekly Nifty chart below. However, long tails on last two candles bars suggest a probable bounce in the cards.
What does it mean for our Investments?
Market struggling to maintain current level, be cautious...
- Mutual Funds - If invested in equity funds then be cautious and be ready to pull the plug. If invested in debt/bond funds then keep an eye on them and DO NOT take a loss more than 8-10%. It might be best to remain invested in FDs/cash/liquid funds/etc for now.
- Stocks - ONLY invest in strong patterns and make sure you have STOP Loss LIMIT in place.
Market struggling to maintain current level, be cautious...