After a fantastic run in September, market needed time to digest the move which resulted in a pullback. Currently, market sits at support from MA(21) as well as earlier high made in Feb 2012 is also acting as support. BUT what to expect next!!!
NO concern based on below chart, Nifty UP trend remains intact.
Below Nifty daily chart clearly displays the pullback and support area. Will the support hold and will we see market bounce from these levels!!! It is more likely that market shall bounce from these level but don't expect repeat of the rally which we witnessed in September 2012, this time it might be slow grind higher. However. lets NOT forget that market can do anything it wants hence a drop below support area is possible too, but next support can be seen near 5500 area.
From below Nifty weekly chart, we can see that market is NO longer hitting against its upper bollinger band and does have room to move further up.
What does it mean for our Investments?
Enjoy the party till it lasts but be alert...
- Mutual Funds - Remain invested in long term accounts as we do not see any signs of concern for now.
- Stocks - Invest in good patterns and DO NOT forget to have STOP LIMIT in place
Enjoy the party till it lasts but be alert...