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.
Nifty has been hitting new highs for two consecutive weeks, and the undercurrent is entering a state of euphoria. In the last week, Time Map showed equality towards bull and bears, and we mentioned using market-neutral trading or basket strategies or using mean reversion indicators to get the best trading results. Broadly, the bulls were in total control of the markets, and hardly any chance was given to the bear operators.
PSU stocks continued to outperform, and expectedly, Automobile joined. The best surprise was that the rise of OMC (oil marketing companies) was phenomenal. We were not surprised by the surge. As mentioned, we were prepared that above 19,985, the first stop would be 20,409, and we were expecting selling pressure around the 20,700 zone, as a movement more than expected is very typical.
We were disappointed as there was no panic or zigzag movement before the breakout, depriving investors of an opportunity.
Behaviour analysis tip for the traders who wish to reduce loss making trades
Punch stoploss in the system or on trading terminal, and then wait for 45 minutes and at 46th minute if the price is above your original price – then ignore the trade. In case price at the 46th minute is below your original price then straight buy. There are 2 more actions – which we will share next week.
Also Read: Nifty at 21k: Four solid reasons why you should not be worried about a correction
Technical: We are extremely cautious at the current levels, but we have put on red alert mode - as above the 20,450 to 20700 zone, Nifty leapt above 20,450 and opened at 20,601 - made a low of 20,507 and closed to a new high on Monday, December 4.
The previous Friday close to Monday-open gap will be filled within a few days, and one should be ready to invest during the corrective phase of the markets. Closing below 20,800 will trigger the first sell signal, and on the bounce, we would prefer to book the profits.
On the upside, 21,275 will act as a strong selling zone, and if Nifty touches 21,275, we suggest booking part profits to reduce non-performing investments, we would prefer to be on the sidelines and wait for new investments at right valuation and time.
TimeMap - Venus in LIBRA will not allow wealth destruction; if it happens, the recovery will be faster. So, investors and traders need not panic sell or anticipate and sell; in case something goes wrong, the position of Venus will give a bounce in stock prices before going down.
The ZodiacAnalyst is still positive and bullish on the markets and will remain so for two more weeks. In the current week, private banks will attract profit booking and selling, metal & 2-wheeler auto stocks showing negativity. Market-neutral long-short models will perform very well.
Accumulation in the specialty chemical due to SUN in Scorpio is recommended, power and Cement sector could give a pleasant positive surprise.
Also Read: FPIs invest Rs 26,505-crore in equities in 1st six sessions of Dec
Based on the Solar Cycle observation suggested that the trend favours the bullish traders from October's end to January 15th. So, the fall before December 21st is an opportunity to invest.
On the other hand, from January 10th till the end of March, the period supports bearish traders. Any positive spike or move is followed by more considerable destruction during the transit.
December 11, 2023: Monday: K.13-7.11/K.14: Vishakha 12.14: Bad Day
Tithi 14 will have the maximum impact; higher opening will confirm lower close for the day. Nifty may give big negative close, and 100 plus points negative should be normal. Our simple suggestion is book profits, Sell. Sell Today, Buy Tomorrow (STBT) is recommended. FMCG and banks could attract max selling, followed by Infra stocks.
December 12, 2023: Tuesday: Amavasya: Anuradha-11.57/Jyestha: Bad day
Flat to nominal positive opening is a good sign for the markets, market sentiment would be mixed, and TimeMap is showing selling could give better results. Auspicious Day to Short sell with 84 days view.
December 13, 2023: Wednesday: S.1: Jyestha- 11.05/Moola: Bullish after 11.30 am
Of all Nakshatra, Moola is the most bullish out of 27 Nakshatra. Automobile, Cement, Real estate, and Engineering companies would see a lot of inflows from prominent investors. A slow or negative start in the opening and closing in positive cannot be ruled out. Buy and Sell would be a better strategy for the day traders.
Also Read: Primary Market: 7 IPOs hitting Dalal Street with 2 listings next week
December 14, 2023: Thursday: Moola -9.47/PurvaShadha: Auspicious day to Sell
Higher opening is expected in the market, and positive sentiment would give more confidence to traders and investors. A good possibility of a reversal candle cannot be ruled out. It is going to be tough day to make money, as zigzag movement will trigger nearby stops. The only way to win today is selective trade with proper stops.
December 15, 2023: Friday: P.Shadha-8.11/U.Shadha: Divergence
Optimistic sentiment would prevail in the market till 1.30 p.m., The best indicator for the traders is divergence on hourly time frame, use sell signals aggressively. Many stock counters would trap the bullish traders on the wrong foot. We warn you to be careful and the best would be to avoid getting carried away by the market frenzy and news.
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