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.
Happy New Year 2024,
Last week's review- As expected, markets gave a nice positive close. Still, on Friday, the last day of weekly, monthly, and quarterly closing, activity, participation, and movement were significantly less, which was very surprising. The activity that has picked up in the oil and gas sector will allow quick money to be made. Nothing significant was noticed besides the first major warning of sideways reversal in the coming days.
Technical - As mentioned in the previous week, Nifty near 21800 is facing tough resistance, and due to various factors, it was visible that frontline activity has reduced, and side market action has increased. Investor confidence and market valuations are at their peak. Including myself, the feeling that this time it is different, and markets will go up further is making me still look for the buying opportunity. Time to be very cautious.
Breaking 21090 will signal the first sign of the trend reversal on the short-term daily chart; second confirmation of the trend reversal would be at 20870, and the target of the downward rally would be 20540 and 20281; it takes not more than 30 days from the trigger of 21090 to achieve the targets given above.
TimeMap - We will see bullish sentiment prevailing in the markets for a few more days, volatility will increase, and the possibility of a new high in the next ten days is very bright. The coming week is very positive, and Media, MNC and Pharma are showing very positive upward movement and lastly, the Oil and Gas sector will see some action. Maintain active bullish participation with strict stops in the trading activity.
ZodiacAnalyst Data - Retrograde motion: Planet Jupiter will turn direct (Margie) or clockwise from and remain in the Nakshatra Ashwini until February 3. We just backtested for 40 days from January 1, and the result shows that consumption, FMCG, and infra companies are best for making good profits.
Rahu in Nakshatra Revati is for 120 days and is showing similar results.
In January, everything looks perfect and smooth; from January 14, the Sun enters the sign Capricorn, and the quality of Saturn is rationality, wisdom and controlling excess - this factor slowly starts showing by January 21. After that, corrective measures start showing up in the markets. Historically, January has been a tough month for global equity investors.
Repeating the past week -
The Ambush zone, identified by TimeMap, which spans from January 14 to February 15, coincides with the Sun's transit through the Capricorn sign. Planet Saturn rules the sign Capricorn, with few qualities of contraction, slowness, mystery, and a play-safe attitude. Although the Crocodile symbolises the Capricorn, it aligns seamlessly with the characteristics of a successful short seller, often referred to as a bear operator in capital markets. It is mentioned earlier and above that this is the best low-risk and high-reward zone. Failure pattern and trend reversal indicators give the best results.
Also Read: In a nutshell: The biggest stock winners and losers of 2023
January 1, 2024: Monday: K.5 14.29: Magha - 8.36 am/Purva: Bullish day
Happy new year to everyone. A higher opening of indices is expected. Being the first day of the year, commonsensical, volumes would be low, and operators or manipulators would be very active in the markets. We simply suggest being buyers in the oil and gas and FMCG sectors. Post 14.29, profit booking and selling pressure would mount in the market.
January 2, 2024: Tuesday: K.6: Purva-11.42/Uttara: Good till 14
A positive opening is expected. We suggest looking for divergence indicators, and the contrarian approach can give wonderful results; the Sell and Buy strategy for the day can give better trading profits, and as for the investors - avoid new ideas and remain silent. BTST (buy today, sell tomorrow) is indicated.
January 3, 2024: Wednesday: K.7: Uttara: Volatile day
Tithi gives nice directional market movement. The Moon nakshatra is the best for the divergence or contrarian position trades. Selling gives better results. Pattern failure stocks will be best to participate in. Nifty could move positively due to select heavyweight attracting institution big buy orders and also FMCG and IT is showing positive for the day.
Also Read: Sectoral Scorecard: A look at the winners and losers of 2023’s bull run
January 4, 2024: Thursday: K.8: Hasta: Investment Day of the week
Patience will give best results, correction is the key - Tithi is best for corrective trades, any mistakes in the last 3 days can be rectified today or adjusted. We expect V pattern day today, intraday DIP and recovery in the markets. Oversold reversal BTST, SIP position investment is recommended.
January 5, 2024: Friday: K.9: Chitra: Bullish
Nakshatra Chitra and Gaps have a close connection, and our observation is among all the Nakshatra Chitra gives the best gap trading opportunity. As mentioned, Index heavy high beta stocks will attract big buying and side markets will see decline.
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