Stockology is a weekly column by futurologist Mahesh Gowande. He is the founder and director of Ayan Analytics that has developed ZodiacAnalyst. It is a research software, with time and price charting tools, and it is exclusively used along with technical support.
Last week, our TimeMap bias was bullish and, in the technical section, 19,985 was given as the trigger and first target of 20,409; on November 29, the Nifty crossed and closed above 19,985, and the weekly closing was 20,291.
As expected, external factors and strong undercurrent of investment flows continued after crossing 19,985; sentiment in the market has turned very positive since then. Most investors and traders will come with very positive bullish ideas.
As a contrarian, most will say it is time to book profits, and quite a few will initiate sell orders. The most important and equally crucial part of the investing and trading cycle is knowing when to stay away or out of the markets.
It has been observed that after booking profits, money gets re-invested, and ultimately, it becomes a zero-sum game. As a nation, India is in the expanding momentum of wealth creation. Market breadth will improve, and the secular bull market will stay for some time.
Also read: Nifty hits new milestone; 38 smallcaps gain up to 33%
Technical: After crossing 19,985 on November 29, Nifty closed the week at 20,291. Technically, 20,409-20,450 will attract the first set of profit bookings, and it can also trigger panic in the bear camp. The volatility will increase, so caution is advised.
The price pattern developed on the charts indicates that the price band of 20,450 to 20,710 is the red alert zone; investors and traders should tighten all the safety nets. New investments are recommended whenever Nifty declines or trades below 19,700; it is better to be safe and sure. The market-neutral strategy of long and shorts will give the best results for the traders during the week. We will provide the dates in our weekly day-wise forecast for the SIP investors.
TimeMap: It shows a neutral week, a fair timezone for the bulls and bears. Venus is in the best position to deliver proper results; it means being in sign Libra - activity would be appropriate, and excess on any side would get adjusted, meaning reversion models will give the best results; strategists can increase the weights on such models. Saturn 120 Venus represents research-oriented, luxury-branded, or legacy companies from any sector that will attract more investment flows.
TimeMap shows positive 45 days for the Steel sector and Mobile technology companies from December 07 onwards. Nifty 50, Nifty Next 50 neutral, Midcap negative and IT coming positive.
The entire week, it seems after initial volatility, the rest of the day would remain choppy. One of the finest weeks to take 72 hours of trade positions, ideally signals received today can be executed next day after the confirmation, which will improve the trade efficiency of the traders.
December 04, 2023, Monday: Bad Day
Investors should consider the higher opening of indices as usual. Day traders do not need to chase momentum; look for profit-booking opportunities in overbought indicators and take appropriate action.
Sell and Buy strategy best for the day traders.
December 05, 2023, Tuesday: Profit booking day
It is an auspicious day to book the profits. Habitual bullish traders can use oversold reversal and divergence indicators for a bullish trade set-up. Silver is coming as an investment idea for the day. Few falling stocks would fall faster after 11.30 am. TimeMap is suggesting a market-neutral basket as an overnight trade strategy.
Also read: 2 best strategies in F&O trading after election results: Shubham Agarwal
December 06, 2023, Wednesday: Auspicious day
Tithi is Navami; in the first half, the sentiment would be bullish, and in the second half, bearish. Investors can invest in the second half, and we recommend initiating SIP by the end of the day. Divergence indicators are best for the day. It's the best day of the week for the traders. BTST recommended.
December 07, 2023, Thursday: Normal day
A flat opening and a prolonged subdued opening is expected. Sentiment in the market is likely to be very cautious, and many will be surprised by the stock price movements in the market. Patience is the key; delayed action will be more beneficial; think twice before entering a trade.
December 8, 2023, Friday: Auspicious day
The indices' gap-down opening is considered the perfect start of the day. Private banks or overall financial would hog the limelight. Traders can mint money today, and aggression will be rewarded; high beta stocks will give the best trading experience.
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