Market is pretty much in a roller coaster ride mode after reaching HIGH on Diwali. As soon as it appears to break through the resistance zone, we find out that all efforts are futile and market falls back into the wide range. What should we expect next!!!
Based on below chart -
- McClellan Index is well above EMA(59) and MA(100) suggesting more and more stocks are advancing which is probably a good sign for the market
- Nifty is above MA(100) and MA(200) BUT MA(100) has managed to get back above MA(200) which is also a good sign
After breaching MA(50) briefly last week, market has managed to get back into resistance zone. The BIG question is Will it be any different this time?
Not much has changed on weekly chart below, market continues to remain near TOP part of the range experiencing resistance for now.
What does it mean for our Investments?
Market continue to remain near earlier HIGH but be cautious...
- Mutual Funds - If still invested in equity funds then stay put but be ready to pull the plug. If invested in bond/debt funds then keep an eye on them and DO NOT take a loss more than 8-10%. It might be best to stay in cash/FDs/liquid funds/etc.
- Stocks/ETFs - ONLY invest in strong patterns with STOP LIMIT in place.
Market continue to remain near earlier HIGH but be cautious...