Market continues to remain resilient and not in mood to provide any substantial pullback or correction. Anyone who missed the rally is getting very jittery and anxious of loosing further gains. At times, it can be very frustrating and lead to irrational investment decisions. So what do we do? When is the right time to get in? Will this market give us a chance!!!
Take a look at below chart:
- Nifty near NEW HIGHS and well above MA(100) while MA(100) well above MA(200) - suggesting strong BULL trend
- McClellan summation index when through a pullback and appears to be stabilizing - suggesting pace at which stocks are advancing is equivalent to stocks which are declining cancelling the effect
Weekly Nifty chart is providing subtle clues shown by green and red arrows. Divergences are clearly visible and going forward we expect to see higher volatility and wider swings.
We have mentioned in earlier post that if you happen to miss the rally then wait for low risk entry.
What does low risk entry really mean?
Market remains in strong BULL trend...
What does low risk entry really mean?
- Buy at support zones so that probability of further market drop is relatively low
- Buy after correction or pullback - check the 2 lines MA(13) & MA(26) which can be considered BUY zones
- During major BULL markets, typically after every 5-8-10 months, market tends to drop significantly also known as flash crash in just one month and then recover rapidly. We expect similar behavior in near future.
- If you absolutely have to invest in this market and cannot wait for low risk entry then use SIP as your strategy so that your cost is spread across various block units.
Market remains in strong BULL trend...