Stockology: Watch the energy and power sector closely in the next week

Be strict and simple: avoid participation when not clear.

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.

Read previous columns here

Review of the Last Week:
The Monday gap-down fall sent serious panic, and fresh selling signals broke the confidence of almost all the diehard bulls. The Nifty Index closed in the negative by slightly more than a percent, but on the charts, things have become worrying, as the Bank Nifty & IT index both have given short-term sell signals. The final two days of the week provided a welcome relief rally, with several stocks indicating signs of bottoming out. Over the next two weeks, we may see solid upward movement in the indices. Overall, the weekly movement aligned with our expectations.

Technical:
Technically, the indices have given fresh sell signals on the charts. The downward correction is likely to continue in many stocks, especially in the two sectors, Bank and IT, which were comparatively stable but have shown significant weakness on the back of results and management guidance. As of now, the technical recommendation is to sell and sell on rises. The peak on 27th September 2024 and the low on 22nd November 2024 showed that the bounce following the decline was weak, indicating a lack of sufficient short positions and an absence of eager bulls willing to invest aggressively. This suggests two possible scenarios: either a further decline to test levels at 22,657, 22,430, and 21,700, or a prolonged sideways movement with a maximum downside of 22,430, followed by a new bull run in the markets. The new weekly bull rally would be triggered by crossing & closing above 24,750.

TimeMap
As we expected in the previous week's write-up, there could be painful sideways movement and further downside. The time map of the coming week is very important, especially from January 21st to 24th, with multiple planetary aspects that would surely trigger something big in the capital markets across the world. The upcoming week is likely to remain very volatile, with an expanded range. The bias is very much in favor of the bear camp, and one should not participate without clarity. Do not try your luck or attempt any gambling trades. Be strict and simple: avoid participation when not clear.

The Mar Cancer – Moon in Virgo and Pluto in Capricorn: The midpoint aspect on 21st is very important for India as a country and the power sector. A big development in Indian politics could affect sentiment in the markets, or a giant PSU could come out with very bad numbers, triggering huge wealth erosion in the markets. Again, on 23rd, there are multiple aspects that will give big movements in selected index stocks. The energy or power sector, especially the oil refineries and producers, need close watching. Oil as a commodity is going to shake the world.

Time Cycle Perspective
The lord of growth and momentum infuser is Jupiter, and it has been in retrograde motion since the first week of October. It will go direct from February 4th, remaining stationary from February 3rd to 6th, triggering many events, including some natural calamities.

January 20, 2025: Monday: K.6-6.59/K.7: Hasta: Volatile Day
Tithi is mentally active, and Moon Nakshatra is very careful, cautious, and slow; this would be the mood in the markets. While there would be a lot of discussion, inquiries, and interest, participants would refrain from direct participation. Tithi 7 is often bullish and gives a rising trend in the markets. The FMCG sector will attract big buy orders. Intraday buy and sell are recommended; participate after 10:30.

January 21, 2025: Tuesday: K.7-12.40/K.8: Chitra: Bullish Day
Tithi, as said above, is mentally active and in favor of the bullish camp. Nakshatra Chitra is best for gap openings and often positive, so a higher opening and quick rise could be the best scenario of the day. Momentum signals would give the best results; get aggressive with the signal, do not wait, and act fast. High Beta stocks or manipulated counters can give the best results.

January 22, 2025: Wednesday: K.8: Swati: Auspicious Day
Tithi signifies the revival or conclusion of an existing trend and the start of a new one, much like shedding old clothes and putting on new ones. A new mindset is required; those who can adapt will make the best investments today. The wise and deep-pocket operators are very active and participate wholeheartedly. Buy business ideas and invest in ventures or assignments. Private banks, index-heavy technology stocks are best for medium-term investment, and defense stocks for the long term. STBT (Sell today Buy Tomorrow) is indicated.

January 23, 2025: Thursday: K.9: Vishakha: Bearish Day
Tithi 9 is best for short selling or sell trades, and it does not mean there are no buy trades, but making money is naturally easier by being on the sell side under the influence of Tithi Navami. Selling failure patterns or stocks that gave buy signals yesterday and failed would be best to make fast profits. Expect a recovery from 14:45 onwards, and even an oversold reversal can be the best BTST (Buy today Sell Tomorrow) trade.

January 24, 2025: Friday: K.10: Anuradha: Bullish Tithi is very positive and gives a nice recovery from the previous day. Nakshatra's influence is positive, especially for long-term large corporates. Mars, Mercury, and Uranus aspects indicate positivity for the power sector and natural resources. It could be slightly tough, but contrarian investment would be the best strategy of the day. The time to watch for very good intraday signals is from 11:40 to 12:10, so give maximum weight to the signals triggered during this time zone.

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.