- Nifty is above MA(100) and MA(200) - suggests a possible turn around
- McClellan Index above EMA(59) - suggests more stocks are advancing than declining in cumulative manner
- As the market is rallying, it is in the resistance zone near 8000 area (shown by dotted line)
- RSI is showing divergence along with PPO
What does it mean for our Investments for now?
- Mutual Funds - If still invested in equities then time to sit tight, as we are on the cusp of turn around. No need to rush to start SIP unless we get positive trend reversal sign. If in cash/ FDs/ liquid funds then it is wise to stay on sidelines until we get confirmation.
- 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.
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Take a look at our service called "Quick Charts" which offers an easy visual way to look at daily and weekly charts of chosen stocks side-by-side. We hope it helps you in your research.
Market on verge of reversal stay cautiously optimistic...