Market continues to be in correction phase. Does it mean this is a start of a bear market or just another shake out before next bull run? What to expect in near term!!!
What can you deduce from below chart?
- Nifty bounced around MA(100) and now falling towards MA(200), we might see a bounce from MA(200)
- McClellan Index shows NO sign of turning and continues it fall even more rapidly, suggesting more and more stocks are declining than advancing
Nifty appears to be trapped between MA(50) and MA(100) from below daily Nifty chart. Most likely we shall see a bounce from MA(200) which could act as support.
On weekly Nifty chart, it is apparent that Nifty could not hold its bounce and is back at support area. Now will it hold the support area!!!
What does it mean for our Investments?
Market is in correction, stay extremely cautious...
- Mutual Funds - Holding existing positions is the risk we would be taking at this point but we certainly should NOT initiate NEW positions. However, we need to very cautious as the next bounce might be our last opportunity to get out.
- Stocks - Its better to stay in cash unless you have existing open positions with good profit margins. Make sure you have STOP LIMIT in place or use Trailing STOP.
Market is in correction, stay extremely cautious...