Last week was awesome for the market, it has recovered quickly.As of now, Euro-zone issues have taken a back seat and good US jobs growth is fueling the rally. For now it looks like we might continue to move higher, however nothing is guaranteed! How far can we expect market to fly higher!!!
Looking at below chart, 1st thing that grabs our attention is that Nifty crossing MA(100) line multiple times in past month. This happens especially when market experiences volatility, however McClellan Index remained above MA(59) indicating possible trend continuation. Hence during such times we DO NOT conclude/act immediately regarding our long term investments but wait for possible confirmation.
What would constitute confirmation of Market trend reversal?
As of now - possible trend continuation & higher moves:
What would constitute confirmation of Market trend reversal?
- Nifty falling below MA(100) & MA(200)
- McClellan Index falling below EMA(59)
As of now - possible trend continuation & higher moves:
- Market is above MA(100)
- McClellan Index remains above EMA(59)
Daily Nifty chart below points out, market is consolidating near 5300 area and a breakout will lead to 5500 area. However, market may pull back along dotted line which is normal behavior.
On weekly chart the resistance is very clear and a breakout will be bullish for the market.
What does this mean for our Investments?
Mutual Funds: Keep invested as market seems to be moving in a UP trend
Stocks: If you follow our watch list then you probably have seen as market move higher, most of selected stocks are doing significantly well in very short duration. Selecting right stocks along with proper risk management is the key to success.
Enjoy the party till it last...
Mutual Funds: Keep invested as market seems to be moving in a UP trend
Stocks: If you follow our watch list then you probably have seen as market move higher, most of selected stocks are doing significantly well in very short duration. Selecting right stocks along with proper risk management is the key to success.
Enjoy the party till it last...