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.
Review: As expected, the markets hit another new high, and the catch-up moment is happening in all the sectors and the stocks. The surprise came from the Technology sector with the TCS results. Management confidence showed that there is a lot of money to be made in the sector. The real estate stories are getting played out. Nifty added 178 points to close at 24502. The fear of losing out is slowly showing as investors pump money in the markets.
Technical: As of now, the indices have not given any sell signal, and till then one should remain invested. In some stock charts, pointed tops or spikes, if visible, one can reduce the exposure or else holding on to the investment is highly recommended. Short-term charts indicate that 24,615, 24,722 and 24,897 will act as major resistance zone, and on the downsides 24,050 and 23,800 will act as buying support zone.
The typical long gap-up candles before the TOP OUT, is yet not seen on the index charts, which makes us remain invested in the markets. Bank Nifty is certainly showing strong resistance at the current levels. It looks like the sector will see stock rotation, and sideways consolidation will test the patience of the BankNifty bulls.
TimeMap
The upcoming week is showing positive FMCG, Pharma and IT. Rest all majorly negative. Nifty is showing nominally positive. Looking at various data it looks like.
In the coming week, Nifty will give a negative close. Next Thursday and Friday as companies declare their results, I would watch for any index-heavy company, which could get hammered and turn sentiment in the markets. In the last week on Thursday, markets indicated some negative signals. Looks like we are quite close to intermediate top.
Monday Gap down followed by slow and steady buying from all the participants will give some positive feel. But we still we believe broader markets will get hit. SUN position is slightly weak, and sudden panic sell off in the markets cannot be ruled out in the coming week. There could be some negative statement regarding power sector or about Index heavy sector leader, which can hurt the sentiment.
July 15, 2024: Monday: S.9: Swati: Auspicious day
One of the finest days to invest in turnaround stories and exit euphoric stocks. Tithi Navami or 9th is good for profit booking and selling. On the other hand, Nakshatra Swati is best for investment. Big possibility is markets will become volatile and big negative closing cannot be ruled out, Sell Today Buy Tomorrow towards close is indicated.
ETF selling from a very big player cannot be ruled out.
July 16, 2024: Tuesday: S.10: Vishakha: Sell Day
Gap down opening cannot be ruled out. PSU and Power sector stocks might come under heavy selling pressure. Proactive strategies will work and reward better than trend following indicators.
Reversal indicators will give best results for the intraday trading. Big negative closing should not be a surprise. Buy Today Sell Tomorrow is indicated.
July 17, 2024; Wednesday: S.11: Anuradha: Bad Day
Tithi is 11, which is slightly bearish, and it is considered auspicious to do a lot of activities. Nakshatra Anuradha puts most participants in a pessimist mode, and thereby a lot of negative discussion is observed among traders. Selectively participate with utmost care and preferably avoid aggressive trades. Contra strategies give excellent results and profits. Very few can trade contra strategies. Buy Today Sell Tomorrow is indicated in Metals.
July 18, 2024: Thursday: S.12: Jyestha: Volatile Bullish day
Big corporates declaring results would give wide movements - negative and positive depends on the results. Double-check before entering, take a second confirmation and then participate. Metal stocks can give a big positive surprise movement and should be participated in aggressively. Buy Today Sell Tomorrow in Cement and Automobile sector stocks.
July 19, 2024: Friday: S.13: Moola: Bullish Day
A higher opening and rising trend is expected. Sentiment in the markets would be very positive and optimistic. Tithi 13, Oil & Gas sector stocks get active. Nakshatra is highly bullish and favours Cement and Automobiles stocks. Buy and Sell strategy will give wonderful results.
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.
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