Market has been trying to change the trend from past two weeks and might be very close in making the decisive move. But based on what we see this? Does charts support this hypothesis!!!
What is below chart telling us?
- Nifty back above MA(200) and trying to break through MA(100) while MA(100) yet remaining above MA(200) - suggesting probable change in trend, if Nifty is successful in breaking through MA(100) and manage to stay above it for few days then this might be end of current correction
- McClellan Index has managed to get above EMA(59) and MA(100) - suggesting more and more stocks are advancing than declining in cumulative manner
Nifty daily chart tells us that market is on the verge of breaking through 8500 level, however NOT there yet! But assuming the current short term trend which started in mid June continues then it might be probable.
Weekly Nifty chart is also suggesting possible change in trend as RSI is above 50 mark and MACD blue line is close to crossing red line as well as PPO making it above zero mark.
Overall, the benefit of doubt goes to BULLs as long as market can manage to break above 8500 level and stay above it.
Lets not forget the situation in Greece (vote on Sunday evening) and Euro-zone instability can cause massive swing due to volatility in the market across the globe. Be ready to pull the plug if things are not going as expected as once the massive slide starts, it can be very swift.
What does it mean for our Investments?
Market about to make the turn...
Lets not forget the situation in Greece (vote on Sunday evening) and Euro-zone instability can cause massive swing due to volatility in the market across the globe. Be ready to pull the plug if things are not going as expected as once the massive slide starts, it can be very swift.
What does it mean for our Investments?
- Mutual Funds - If still invested in equities then stay invested as correction might be over. If market breaks above 8500 area then SIP can be started but wait for confirmation. If in cash/ FDs/ liquid funds then this might be low risk entry however remain cautious.
- 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 about to make the turn...