Market made a new HIGH in early December 2013 but soon gave back those gains and currently wrestling to stay in the resistance zone. In short, market is getting boring by the day. What does it mean for us?
No change in below chart as all signs of bullish indications continue to persist -
- Nifty remains well above MA(100), while MA(100) remains above MA(200)
- McClellan Index continues to move upward while remaining well above EMA(59) & MA(100)
Nifty broke dotted trend line last week as can be seen in below chart, however it manages to remain in resistance zone.
Not much has changes in weekly chart as well.
As suggested earlier, we DO NOT believe that this market will significantly move higher from current levels until election results are out. TOO many uncertainties ahead and smart money NEVER takes too much risk.
What does it mean for our Investments?
Market is in consolidation, better be careful...
What does it mean for our Investments?
- Mutual Funds - If invested in equity funds then stay put but be ready to pull the plug if market falls below 6000 level. If invested in debt/bond funds then DO NOT take a loss more than 8-10%, until then let it ride. It might be in our best interest to stay in FDs or Liquid Funds for now.
- Stocks - ONLY invest in strong patterns and DO NOT forget to have STOP LIMIT in place. Check out our Watch list here.
Market is in consolidation, better be careful...