Last week, market kept dropping till Thursday and then a gap bounce on Friday changed the entire picture. One day can make such a BIG difference, Isn't it!!! The bounce was caused due to ECB's detail plan regarding back stopping European debt crisis by buying "unlimited" bonds in short term to avoid default by any European country. At least for now, it will help global markets but all they did is to kick the can down the road. Expect year 2013 to be a roller coaster ride. What can we expect in short term!!!
Nifty managed to stay above MA(100) while McClellan Index slightly dipped below EMA(59), however we mentioned that market still remains bullish, why?
- We follow Nifty and MA(100) relationship as key indicator
- When Nifty with MA(100) gives opposite signals with McClellan Index we remain cautious but go with 1st point above
Nifty broke MA(50) earlier but bounced hard, creating a "bear trap", just the way it did in July. Since this was a gap bounce market may spend few days consolidating near this range and then continue higher.
Not much changed on weekly Nifty chart, once the resistance (shown by dotted line) is broken then Nifty can head to 5600 area.
For now, it seems like Nifty would continue its journey upwards for next couple of weeks/months.
What about Investments?
Stay focused and disciplined...
What about Investments?
- Mutual Funds: Remain invested as market remains in bullish territory
- Stocks: Choose stocks with good pattern and do not forget to have STOP LIMIT
Stay focused and disciplined...