Indian equities will resume their uptrend from the third week of January, and the rise could continue till late April or mid-May, says Mahendra Sharma, a US-based market expert who bases his investment decisions on astro cycles.
Sharma, who has been tracking financial and commodity markets for close to three decades now, sees Nifty getting within sniffing distance of 24,000 by mid-May.
At the same time, he advises to investors to be very cautious during mid-May-July and in October and November, as these are likely to be highly uncertain periods for the market.
“The astro cycles are turning a bit uncertain from the end of May not just for India, but global markets as well,” he told Moneycontrol. “My advice is to remain cautious—very cautious—because the Jupiter cycle will be changing, and it is currently in the house of fire, Aries.”
According to Sharma, since last April, Jupiter has been moving through Aries, a sign of Mars.
“Mars is a sign of fire and blood. So, fire signifies an aggressive movement in the financial market. When you apply Jupiter to the financial market, it signifies aggression. This Jupiter will remain in the house of Aries, the house of aggressive moves, until the end of April.
May onwards, you will see the market slowing down, becoming sluggish, as Jupiter moves into the house of Taurus, which is ruled by Venus. Venus and Jupiter are not good friends. This shift may bring some discomfort or worries into the financial market, affecting even the most powerful players,” he said, adding it would be a difficult patch for investors.
Star trek
Originally a native of Kenya, Sharma developed a love for astro cycles from his grandfather, who used to practice astrology. As a 11-year old, Sharma would help his grandfather with the charts, as the latter’s eyesight was failing.
Sharma first applied his learnings to geopolitical events before turning his attention to financial and commodity markets in the 90s. His calls are based on the movement of planets and a theory he calls the wave of nature cycle.
“Astrology plays a key role in my theory because the planets, especially when they are retrograde or positioned in specific houses, exert influence. Planetary movement helps to guide what will be the geopolitical situation, what the financial market is saying.
"And then I try to understand, taking from the previous data, all the last 100 years data, that how every time when these certain planets change, how the world behaved, why the world war came, why the depressions came, why the market was so bullish, why the commodities were bullish, why they were negative, why the people were losing trust in the central bank,” Sharma said.
The human element
His wave of nature cycle is based on human behaviour patterns. “It also explores how large populations will collectively act in a certain situation. Even during periods when the market is hitting highs, around 18-20 percent will be sceptical and 10-20 will be downright negative. However, the majority, around 60-62 percent, will remain bullish, indicating a bullish market trend. This human behaviour pattern is intricately connected with what you can call astro cycles, which are tied to astronomy,” he said.
Rupee, oil, gold
Sharma is bearish on the dollar, and sees the rupee trading at 80-82 to the dollar for most part of the year.
He is bearish on oil as well. “I see oil continuing to fall and hitting a multi-year low,” he said, adding that it was unlikely to top $82 per barrel and on the downside, it could fall as low as $57.
Sharma sees gold entering a bullish trend from mid-June. “I see gold and silver bull market starting big way. Many people are shifting from the gold to the bitcoin and cryptocurrencies. But I believe that gold will come back and stand against crypto… from the 2025 onwards, it will start a new journey towards $3000 (ounce),” he said.
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