- 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
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...