- Nifty back above MA(100), however MA(100) appears to have crossed MA(200) - suggesting further caution
- McClellan Index has turned around and above EMA(59) - suggesting possible turn around as more stocks are advancing than declining in cumulative manner on daily basis
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then stay invested as market might be turning around. If in cash/ FDs/ liquid funds then the low risk entry was near MA(50), however the risk is elevated and one needs to be ready to pull the plug.
- Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. When market is in correction, it will drag everything down with it. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.
Market trying to turn around yet remain cautious...