StockZodiac Reservoir of Wisdom
Every momentum will lose its strength and it is a known
fact, but when, where, and how will the following action be is the key. The drop
in the volumes could be due to several reasons including festival holidays. The
lack of follow-up buying, and the cautious approach adopted by investors and
traders was signaling a potential reversal. When momentum gets extended or the
rise is steep, in such cases identifying a correct stop becomes difficult, or the
confirmed stops are far too away, and the long trade has become unviable. We
have reached a pattern that is in favor of the bears or short selling positions,
so obviously before going short trimming is key, and then look for shorts.
Technical - We assumed 17450 as a key zone to watch and even reduced
few positions, but markets continued the upward journey, so we also continued slow
profit booking trades now around 17850-900 the trade set up is turning in favor
of the seller, and we saw the first crack on Friday. It was an easy decision. FridayTimeMap was bearish for the day, and it has done its job. Our observation has
been in case the market is in a major uptrend, then a corrective move is
required as without consolidation it becomes tough to attract follow-up buying
at the higher levels. On the downside, 16700 or even 16500 corrections would be
best for the higher upside. The selling stop is at 18340.
TimeMap, broadly in the coming week our view is slightly negative, and as mentioned last week, continue to book profits selectively, markets will give a bounce to exit from the trapped positions, no need to panic sell out, or liquidation we are in a favorable market, and it would give exit opportunity. Planet aspects are not showing any negativity, Mercury-Pluto aspect is positive for the PSU Power related companies, Venus-Uranus would attract selling pressure from the large institutions, especially the sector leaders.
We also mentioned as per TimeMap, the next important zone
is from September 5th to September 14th as it would give decisive
clarity to put & implement position strategy. There is no need to anticipate,
better let the period get over.
Positive – Pharma, Select PSU, Astral, MGL, Bpcl, Bharti,
Infosys, Wipro, Ongc, Hdfcbank, Hero, Pidilite, and Tata steel.
August 22, 2022: Monday: Volatile day
Global sentiment is slightly negative, a gap down would
indicate and confirm the beginning of the corrective phase. The moon's position indicates those who do not
surrender at valid stops will see a big negative in their books. STBT is highly
recommended, intraday recovery will further confirm a big dip going forward.
August 23, 2022: Tuesday: Volatile day
Mean reversion signals would give the best results. The
IMP time to watch is 11.45 to 1.15, for rewarding intraday signals on the 15-minute
chart. The Pharma sector has shown positive, along with underperforming stocks for
the past 45 days. Banks coming big negative with 48 hours of TimeMap, and technology
looking positive. STBT
August 24, 2022: Wednesday: Bad Day
Gap down and big dip cannot be ruled out, extremely
critical day of the week, it is powerful and would influence negatively. Before
lunch trend following and post-lunch trend reversal would give wonderful
results. Many traders will lose patience, and a good chance after the liquidation
of longs, many stocks would rise big. Day of the week that would test the depth
of your personality.
August 25, 2022: Thursday: Bad Day
Cover shorts, book profits, while gap down opening
cannot be ruled out, do not make new investments. We recommend adding an existing
position after 11.30, and even can take a speculative position is highly
recommended. Banking is the best sector to look for to make big money, followed by
real estate stocks, and last would-be defense.
August 26, 2022: Friday: Big Breakout
Consolidation breakout of reversal trades, big money
can be made by being extremely aggressive. Metals and cement stocks are to be
watched; 52-week high stocks would show a lot of fireworks. Expensive stocks
would get more expensive today.
Futurologist
