Market got a nice bounce at 200 day moving average and continued its rally through 50 day moving average, finding itself back into resistance zone. Will it be able to make a NEW HIGH this time!!! What shall we expect in near term?
Nifty is back above MA(100) while MA(100) remains above MA(200), both are bullish for the market. McClellan Index is flat suggesting ratio of advancing stocks to declining stocks remain almost same, however it remains well above EMA(59) providing benefit of doubt to BULLs.
On daily chart below, we can clearly see that Nifty is back into resistance zone.
Not much has changed on weekly chart below.
We doubt that this market will successfully break through the ALL TIME HIGH made during Diwali of 2013 simply due to the fact that election results will drive the market direction and elections still have two months to go. Smart money will keep this market in a narrow range until the results are out, hence expect the waiting game. However nothing is guaranteed so keep an open mind.
What does it mean for our Investments?
Market stuck in tight range yet bullish, be cautious...
What does it mean for our Investments?
- Mutual Funds - By now those who were invested in equities for past 3 months know that market did not make any progress what-so-ever. Those invested in debt/bond funds might have seen some loss but nothing significant, the best bet so far was to remain in FDs/Liquid Funds/cash.
- Stocks - ONLY invest in strong patterns, some of our picks made significant gains so do take a look at our watch list from time to time.
Market stuck in tight range yet bullish, be cautious...