- Top portion - Nifty well above MA(100) & MA(200) while MA(100) remains above MA(200) suggesting bullish bias
- Bottom portion - McClellan Index is well above EMA(59), while EMA(59) is well above MA(100) confirming bullish case
Various Scenario -
- Breakout: If at all this happens before election results then expect a pullback to 6400 level, hence NO reason to worry about missing any rally
- Drop below resistance zone: Very likely but as long as Nifty remains above 5500 area, NO reason to panic
- Meltdown: Drop below 5500 area, a remote possibility before election results but again NOT an immediate worry as we shall get enough signals before the actual event
What does this mean for our Investment?
- Mutual Funds - As suggested earlier, if invested in equities then stay put but be alert. If in debt/bond funds then keep an eye on them. Staying in liquid funds/FDs/cash appears to be best option for now.
- Stocks - ONLY invest in strong patterns and never forget to have STOP LIMIT in place. Check out our Watch list here.
Market maintains bullish bias but be careful...