Market continues to be in correction and appears to have found support at MA(200) line. BUT for how long shall we expect this to continue?
Not much has changed in below chart. Nifty appears to have found support near MA(200) line while McClellan index continues fall further below.
Nifty bouncing off of MA(200) line is clearly visible in below chart. Expect Nifty to bounce between MA(50) and MA(200) for a while before providing clear market direction. Just in case if Nifty breaks MA(200) then it would be bearish for the market.
On weekly chart below, we can see that Nifty is resting on support shown by dotted line.
What does this mean for our Investments?
Market continue to remain in correction, be cautious...
- Mutual Funds - As suggested earlier, hold onto your positions and DO NOT add new positions. Wait for a meaningful bounce which might be our last chance to cash in.
- Stocks - It will be wise to stay in cash unless you see a very convincing pattern. If you have open positions then make sure you have STOP LIMIT in place.
Market continue to remain in correction, be cautious...