- In top part of the chart, we can see Nifty well below MA(100) while MA(100) & MA(200) trending down - This is suggesting that market is in bear mode and further downside is possible.
- In bottom part of the chart, we can see McClellan Index is below EMA(59) and trending down - This is suggesting that more stocks are declining than advancing in cumulative manner.
What does it mean for our Investments for now?
- Mutual Funds - If still invested in equities then time to hold onto this roller coaster ride, exiting now will be very expensive and painful. No need to rush to start SIP unless we get positive trend reversal sign. If in cash/ FDs/ liquid funds then it is wise to stay on sidelines.
- 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.
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Market is bearish trying to find support...