- Nifty remains above MA(100)
- McClellan Index crossing EMA(59) from above
- Nifty in pullback mode
- Sitting right at the MA(50) or MA(50) acting as support
- Dotted trend line could act as another support for Nifty
Will Nifty fall below MA(50)?
Nothing is guaranteed, hence we need to be prepared. Most likely we shall see a bounce but remember its game of probability. We shall try to align ourselves with the side which has more "odds of winning".
- Dotted trend line was broken earlier but Nifty fall back below it, which makes it was a BULL trap
- Dotted trend line will act as resistance until broken decisively
- Market has more room to pullback as long as it remains in the NEW RANGE shown below by green lines
- From daily nifty chart it looks like market shall bounce from these levels
- Weekly chart suggest otherwise, market is back below resistance and could move down further before another push higher
- From McClellan Index chart (1st chart), market has room to move further down before breaching MA(100), for now market outlook remains bullish. However we need to be cautious.
What about Investments?
- Mutual Funds: Market remains in bullish trend and NO significant concern of trend change hence stay put.
- Stocks/ETFs: To protect profits and avoid losses, make sure you have STOP LIMIT in place as well as take partial profits.
Stay alert and cautious...