Stockology: Balanced week ahead; more in favour of bulls

Forecast for the 2024 currently is that markets internal strength is quite positive but volatile, which is not a risk.

Stockology is a weekly column by futurologist Mahesh Gowande. He is the Founder and Director of Ayan Analytics, which has developed ZodiacAnalyst, a research software with time and price charting tools.

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Review – While technical indicators turned positive, we were little sceptical, and our write up remained slightly biased toward SELL, and profit booking. The historical 2.5  percent negative move played well.

Monotonous and predictable Adani focus by the traders pushed the group value further high.

PSU remained very stable and looks like nobody wants to exit the natural resource space. The negative closing of the week was not a surprise, as most traders liquidated their F&O positions, and will do rollover post results. As expected Thursday turned put negative for the markets.

Technical – After scaling new high, Indices gave a nice correction, and ideally 22,226 is critical level, Indices should not trade below that level for more than 2 days. The exit stop is at 21,800 – even a spike below should be considered sign of a weakness. Obviously, with election results on June 4th volatility would be very high, and utmost care should be taken. On the upside 23,460 remains best target, and next is 23,960.

The targets are confirmed and ideally should be achieved before October 10th, 2024.

Extra care point - As long markets are trading above 21,700, there is no need to worry, as breaking will indicate pattern failure and then markets will crash fast.

TimeMap – Most will be curious to know how the next week is showing from the TimeMap. The data from various combinations of planet positions is indicating a very balanced week, slightly more in favour of the bulls. Broad indices show a very positive week ahead. Ideally, whatever happens on 4th or 5th, the index levels will come back, as Mr Market loves the participants, and always give opportunity to exit from the trapped positions. The timeline for the pull back is maximum 13 days. Speculators and gamblers should have sufficient margins for the MTM (mark to market). Rest time will take care and give a nice exit. Simple advise, hold position for which MTM is kept aside. Weekly view is positive close from the last Friday closing, and in a big positive, or a full recovery from the last week fall. On the negative, max is coming as -2 percent, and on the upside +5 percent in the data.

Also read: Dalal Street prepares for counting day: Take a look at the biggest market calls for June 4

Forecast for the 2024 currently is that markets internal strength is quite positive but volatile, which is not a risk.

It only needs trade and money management skills. On the solar date of September 10th to October 10th. Global markets will witness extreme conditions and which can affect Indian markets as well. The situation would be a crisis due to currency markets or escalation of the war situation. The solar eclipse in October is going to be bad for the stock exchanges across the world.

Weekly day forecast

June 03, 2024: Monday: K.12: Ashwini: Auspicious Day

Tithi is very good to initiate well researched ideas. Avoid technical indicators (behaviour signals) use more of the fundamental factors (logic) while deciding the investment idea.

Nakshatra Ashwini is one of the top 5 investment Nakshatra and has given best opportunity in Technology sector and next best is healthcare companies.  BTST is recommended.

Midcap and Small cap, especially the chemical, Power sector companies.

June 04, 2024: Tuesday: K.13: Bharani: Trading Day

Tithi has historically given intraday panics and Nakshatra of the Moon is good for sell. From Intraday perspective, sell trigger with equally fast buy orders are punched in the system. Fast movement, quick action, is the key for the traders. The sector that looks bad is Auto Index, new tech companies, and lastly most PSU stocks could get hammered. The best sector of the day is PSU banks coming very positive. STBT is highly recommended.

June 05, 2024: Wednesday: K.14: Kruttika: Volatile trading Day

Tithi is good to initiate position trades, and Nakshatra is best for divergence indicators signals. A proper reading and 2nd confirmation method will give best trading profits. Traders should actively participate in the market as this is the best day of the week to make money. Market neutral basket trades will give best results.

IT sector leaders and small cap companies would witness very strong inflows from big funds.

June 06, 2024: Thursday: Amavasya: Rohini: Bullish day

Higher opening cannot be ruled out. Buy and Sell strategy is suggested for the day. The fear of last week, slight delayed participation is recommended. Use hourly signals and mostly after 13.20 it would be much reliable signals. Positive closing is expected. High BETA private banks and refineries BTST.

June 07, 2024: Friday: S.1: Mrugga: Momentum Day

Nakshatra Mrugga, Sun entry means wide price movement in many stocks will be seen on the screen. Consolidation breakout indicators will give best results, and many will get a trigger during the coming 13 days. A trend following system will give best results. Try to hold profit-making trades as long as they don’t give reversals. In case markets close at the high of the day, then STBT recommended.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.