- Nifty continues to remain well below MA(100) while MA(100) is below MA(200) - suggesting market remains vulnerable
- McClellan Index continues to remain below EMA(59) while trending down - suggesting more stocks are declining compared to advancing on cumulative basis
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then time to bear the pain until we see a market turn around. 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 trying to establish support...