After a good run from mid November last year, market appears to tired and undergoing a pullback phase as expected. Will this turn into an ugly correction or mere a pullback remains a mystery. What to expect next?
What is below chat telling us?
Above scenario indicates that its time to be cautious, as long as Market remains above MA(100) line we do not see any reason to be concerned. However, keep a watch on the market.
- McClellan Index has crossed both EMA(59) and MA(100)
- Nifty is converging fast towards MA(100) line
Above scenario indicates that its time to be cautious, as long as Market remains above MA(100) line we do not see any reason to be concerned. However, keep a watch on the market.
Daily Nifty chart clearly shows, market has broken 8 month long trend line as well as MA(50) line. Most likely we shall see a bounce from 5850 area. Every time market has dipped below MA(50) line, it has bounced back hard, hence we can expect similar behavior. However, it is NOT mandatory that this time will be same but might be likely.
On weekly chart, it is more clear that market is undergoing pullback and will consolidate near 5850 area where it will get support from previous level.
What does it mean for our Investments?
Market appears to be in pullback mode, be cautious...
- Mutual Funds - Stay invested, we may see signs of caution but nothing to worry yet.
- Stocks - Invest in right patterns and always make sure you take partial profits, also have STOP LIMIT in place for open positions.
Market appears to be in pullback mode, be cautious...