Entire last week, market continued to hold onto MA(21) support area in a very narrow range. This pullback appears to be very controlled so far. However, things can change soon. What might be markets next probable move!!!!
Based on below chart, so far trend remains in bullish mode with No signs of concern as of yet.
- McClellan summation index is above EMA(59)
- Nifty is well above MA(100) and MA(200)
In below chart, pullback is clearly evident. Nifty appears to be in consolidation mode in a very narrow range. Break of this level could drive Nifty towards 5550 area which might act as next support and bounce from current levels could push Nifty higher to 5900 area where next resistance is expected.
Weekly Nifty chart can provide more clues regarding the direction. Now that, Nifty is NOT hitting upper bollinger bands anymore, it has room to continue its UP trend.
Based on all above charts, most likely Nifty appears to continue its UP trend after a brief pullback, however markets are free to act as they want. Either way, current bullish trend is far from any danger hence no need to panic.
What about Investments?
Be alert and enjoy the party till it lasts...
What about Investments?
- Mutual Funds - Continue to remain invested, No harm in entering new positions however the best time was in mid September 2012.
- Stocks - Invest in good setups but DO NOT forget to have STOP LIMITs in place. Always take partial profits and let the remaining position ride the wave.
Be alert and enjoy the party till it lasts...