February 28, 2024

Nifty on the weekly charts gave a negative closing; the candle formed seems bulls have consciously supported the price. We suggest booking profits in overbought stocks and strategically building a cash buffer in the portfolio

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. 

After a long time, the weekly close was nominally below the open, marking the weekly candle in red supported by solid volumes. This put up the first sign of confirmed weakness in the bullish camp. Our technical targets remained in line, and on the Time Cycle, the bear camp is catching up.

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Noticeably, market breadth was very positive, and as we had mentioned in the earlier write-up, the small and midcap sector indices will enjoy something similar to the 2003 to 2007 phase.

Technical: Nifty on the weekly charts gave a negative closing; the candle formed seems bulls have consciously supported the price. We suggest booking profits in overbought stocks and strategically building a cash buffer in the portfolio, as correction signals are appearing on the cards, and it can throw a lot of investment opportunities. The breaking of 21,200 is to be considered a confirmation of the reversal and corrective movement.

Also Read: IREDA, Cello, Mamaearth could make it to MSCI index, Nykaa, Mankind need to rally more

After the trigger of 21,200 – ideally, when an uptrend enters the corrective phase, the first trigger generally gives a nice pullback, allowing the bulls to get out of their trapped positions, obviously in loss, but the loss is less or nominal. The downside targets are 20,586 and 20,230. The upside is 21,940; level 21,375 is the best swing level buy, with a stop at 21,200. Reducing positions is highly recommended.

TimeMap – After a very long time, this is the first time Nifty has shown weekly negativity, which we had mentioned in our previous two weekly write-ups. Since markets are in the secular bull phase, volatility would be high – there will be infinite opportunities to invest and exit; in a secular bull run, the corrective phases are equally steep and fast.

The Venus in Jyestha will revive the Media sector and the mining stocks. In the coming week, a few significant aspects will bring volatility in the markets, and the energy sector will see some essential positive events or news. SUN 120 URANUS is very positive for oil-producing and processing giants, and the impact will be felt in the next six months. Another exciting thing is that in the next 60 days, many companies will become targets for the acquisition, merger and takeover.

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Also Read: SME IPOs: Here are 7 tips to tell the good from the bad

January 08, 2024: Monday: K.12: Anuradha: Auspicious day

Tithi is positive, and proactive actions are rewarded. Nakshatra & Tithi combination indicates long-term deep pocket investors would be participating big in the markets, and the coming ten days would see a spike in block deals by the sticky investors. Being an auspicious day, Stock ideas, which can be accumulated over 3 to 4 years, such ideas can be initiated today. BTST (buy today, sell tomorrow) is highly recommended.

January 09, 2024: Tuesday: K.13: Jyestha: Volatile Day, Short Sell

An Auspicious day to initiate short-sell position trades with a target of a minimum of 45 days, or 20 percent, whichever is earlier. Tithi 13 is volatile, and humans tend to panic even with small external factors or news, especially around 12 to 13.45, the probability is highest. The steel sector is best for trading. BTST in Cement and FMCG.

Also Read: Four IPOs to hit Dalal Street this week for fund raising, with one listing

January 10, 2024: Wednesday: K.14: Moola: Bullish

HIgher opening of Nifty is expected. Swing traders can look for buy trades, especially in Cement and FMCG stocks, branded retail in another sector that would grow big.

Bullish day, the only positive day of the week. STBT (sell today, buy tomorrow) is recommended.

January 11, 2024: Thursday: Amavsya: P.Shadha: Avoid investment.

A higher opening of indices is indicated. Volatility would be high, and we are expecting a V-shaped market movement. Traders can look for the bottom-fishing trades during the day; buying and selling would be rewarding. Avoid momentum breakout and look for the pattern failure buy trades. Towards the close, stocks showing a steep rise can be used as STBT trades.

January 12, 2024: Friday: S.1:  U.Shadah: SELL day

Divergence indicators and contrarian trades will give the best results. Sell trades would be more rewarding. STBT is highly recommended.