Microfinance Sub-Index 18 October

 MACD and RSI suggest further decline. Let’s hope S1 @ 2481 and if not then S2 @ 2320 hold and by then MACD and RSI advise directional change. Overall microfinance equities should show further declines as well. If the support levels mentioned above are breached then that advises a whole new perspective.

For now, you need to analyze individual equities support levels which may be close or the price is already playing with it and acknowledge risks accordingly. Once the index stabilizes at given levels, we would look forward for further confirmations for a re-entry or a fresh entry.

Currently, we have NADEP and CLBSL in our portfolio. CLBSL we are looking at support level of 670 and NADEP 650. Both equities are, if positions are open then hold until these support levels, and if not then wait for entries.

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Please note that due to market volatility, some of the above sight prices may have already been reached and scenarios played out. Trade in your own discretion.