Stockology: Markets to remain range-bound volatile, big dip cannot be ruled out

the new high will bring the confirmed stop loss nearer, and it has happened.

Stockology is a weekly column by futurologist Mahesh Gowande. He is the founder and director of Ayan Analytics which has developed ZodiacAnalyst. It is a research software, with time and price charting tools, and it is exclusively used along with technical support.

Read previous columns here

In the last week, markets made a new all-time high. Post new high, the follow-up euphoria was missing. Instead, there were more negative comments, opinions, and warnings from the influencers and well-known senior advisors. It means most people are now missing the rally, or the participation has reduced from the supposedly intelligent and smart investors.

Broadly, markets are testing patience, and sentiment is dancing to the tunes of greed and fear.

Technical - As we had mentioned, the new high will bring the confirmed stop loss nearer, and it has happened. The best part of the momentum rally is when the confirmed stop comes nearer, the risk profile of the market drops, and the emotional volatility picks up. The divergence in opinion is visible; intelligent people slowly choose to be on the sidelines.

Nearby short-term stop loss is 21,245, and the weekly stop is 21,110. Traders and investors continue to hold or selectively add stocks with trend stops. If the stop gets broken, do not panic or rush to sell; a small pullback rally will give you enough time and space to liquidate holdings and speculative positions. On the upside, the level of 22,650 seems to be the clear target; as of now, it does not seem difficult to get crossed, but after that, there will be more trouble ahead, and volatility will increase.

TimeMap - We are surprised nothing negative happened; the aspects often have triggered natural calamities, and the biggest is on February 28th. The overall week is becoming majorly negative, markets will remain rangebound volatile & a big dip cannot be ruled out.

Selective buying on dips can be continued, and stocks in extended momentum can be periodically trimmed. On the other hand, Volatility will increase during the week, and the possibility of breaking the level of 21,800 is very high.

Also read: Primary Market: 6 IPOs opening next week with 5 companies scheduled for listing

Mar 90 Jupiter – on 27th at 13.41 shows negativity of 66 percent & Efficiency rating is 55, Nifty 100, it means positive 2.5 percent and on the negative side, it could be negative -3.75 to 4.5 percent.

Mars 120 Uranus, Helio Centric aspect is at 18.57 Time, showing negativity of -54 percent, & efficiency of 67 percent, which means the range on Nifty 100 can be +3.10 and -4 percent.

We will be sharing such data and explaining how to read in our next writeup. The data is extracted from our proprietary software ‘ZodiacAnalyst’. Our ZodiacAnalyst is not for sale and needs many years of study in Astronomy and Astrology.

We are entering a phase - where value investment and safety will become of top importance.

Weekly view ahead

February 26, 2024: Monday: K.2: Uttara: Auspicious Day
The market will open positively. Participants will be keen to participate and make money. Being an Auspicious day, we believe big institutions and funds will be net sellers of commodities, Private banks and consumption stocks. SIP in ETF or Mutual funds is highly recommended. A negative close will be a good sign for the markets, and only then BTST will be best.
February 27, 2024: Tuesday: K.3: Hasta: Good till 13
Tithi gives nice momentum breakout trades; rather, it is best for the momentum breakout trades, and a lot of money can be made. Algo traders can make a lot of money today. Moon in Hasta is best for investing in Index stock trading at lower levels or corrected in the last few days. Big Names like HDFC Bank, Hindustan Unilever, ITC, and Wipro are showing positive, purely based on TimeMap. (Note- we are invested and might take actions as per signals)

February 28, 2024: Wednesday: K.4: Hasta/Chitra: Auspicious Day
Gap down opening is a positive sign for the day. Tithi gives deceptive signals on charts. We suggest taking 2nd confirmation before entering any trade, as Tithi 4th hurts the most to traders. We have seen that the best trade on charts is the Pattern Failure trade; it gives the highest profits. In the 2nd Half, BTST trades are highly recommended.

February 29, 2024: Thursday: K.5: Chitra/ Swati: Auspicious momentum day

Tithi gives wide and fast movement; overnight traders will make the most profit in the day's opening session. Nakshatra Swati is the best for investment among all the nakshatras. It is also considered that the finest business decisions are taken under the influence of Nakshatra Swati- We expect a positive movement today and buy-sell will give the best profits today. BTST is highly recommended in metal and energy sector stocks.

March 1, 2024: Friday: K.6: Swati-Vishakha: Bullish Day

Tithi gives the best pullback trades, or one can use mean reversion trades. For the bullish traders, it is the best day of the week. Overall holding positive trades will be a better strategy, as many stocks will give a nice
bullish movement in the price.

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.