- Nifty barely above MA(100) while MA(100) well above MA(200) - Any time market drops below MA(100), it is a warning sign and we should exercise more caution
- McClellan Index has crossed EMA(59) and is trending downwards - suggesting to be careful
What does it mean for our Investments?
- Mutual Funds - Stay invested in equities if already in the market and NO need to stop SIP. If in cash/liquid funds/FDs then have patience and wait for next low risk entry.
- Stocks - ONLY invest in good patterns and do not forget to have STOP LIMIT in place. It is very hard to find good setups in these markets so be careful. Use our trade size calculator to manage your risk and also check our watch list which might help you identify good candidates.
Market remains in pullback mode hence its better to be cautious...