StockZodiac
Reservoir
of Wisdom
In
last week's market write-up, we mentioned that a steep fall would begin
anytime, and the steep fall took most stock prices to 3 months lows. The
Sentiment in the market turned from cautious to pessimistic & the swing
traders incurred huge MTM. Investors who booked profits in small and midcap
stocks & indexes would be considered competent and intelligent; those who
missed will regret it, and those who remained just observers would consider
themselves lucky.
The Nifty declined by 495 points, while the midcap index corrected
proportionally; the small-cap index had less fall and showed much strength. We
expected markets to drop below 19000 and test 18750 or 18600, and the steep
fall did not surprise us.
Technical - The steep fall is followed by a corrective rally, and,
especially on the last day of the week, next week's monthly closing would be
another reason markets would remain stable. The short-term 12-month charts have
shown a negative trend, week charts are selectively negative, and still, most
individual stocks are in the positive direction. The steep fall in stock prices
has opened a probability of 18200 and 17900 before November 10th; as of now,
the confirmed target remains 18600. On the upside, the index above 19700 would
be the first sign of strength. We are bullish on the Indian markets; even at
17500, the Nifty monthly trend remains bullish, and investors can continue
investing with long-term vision in the frontline indices. We are entering a secular
bull run, which makes broader market investment a more attractive and stable
approach to investment. Concentrated portfolios carry too much personal
dependency and go down significantly. The 19350 to 19700 would be a challenging
zone, and significant selling would come from the trapped, leveraged, and
speculative positions.
ZodiacAnalyst TimeMap - Historical records prove investor
sentiment is often brutally hit in October; as per Indian astrology, the SUN in
sign Libra is debilitated(weak). Especially in Nakshatra Swati, ruled by Rahu,
SUN is at its lowest strength. Rahu or Ketu are not planets; As per the Vedic
system, they are energy points in space where the path of the Sun & Moon intersects.
Rahu & Ketu boost speculative tendencies and rule the derivative markets.
It has been observed that in January, May & October, human
emotions swing like a pendulum at extreme ends. In stock markets, investors
& the other participants display powerful emotions, are over-excited and
aggressive, tend to panic and overreact to minor issues. The Market sentiment
shifts from optimism to pessimism and vice versa.
The influence of Nakshatra Chitra & Swati can be observed from
October 10th to November 7th every year. Extreme emotional
outbursts give the spike and reversal pattern on the technical charts. October
is the worst for options traders, especially since indices take sudden
directional moves. A few reasons we noticed are half-yearly results, contrarian
corporate commentary, and external factors like regional & political unrest
or natural calamities. Globally, October has been a bad month for the equity
markets.
As per our observation, it is one of the Auspicious Months to
invest, with a timeline of 8 months to 4 years. A spike in volatility is a
vital indicator of the month. It is a known fact that investment in October
gives an excellent 10 to 15 quick returns within a year. The Phase from October
23rd to November 6th is under the influence of Nakshatra Swati, also known as
the Star of Independence. Excellent communication & negotiation skills help
to resolve conflicts. Finest business Acumen & decisions, visionary
investors are most active under the influence of Swati. As per our
research, it is the best time of the year for long-term investments, SIP,
Pension investments and initiating business ideas.
Like Google Maps, which uses 70 to 80% of past and the rest of the
present data, ZodiacAnalyst TimeMap uses past Astronomical data and current
technical conditions to extrapolate probable market movements. We recommend
understanding & getting used to different methods, paper test trades and
then doing some actual trade tests.
The purpose of the TimeMap is to reduce post-trade anxiety. Most
logical decision & transaction goes haywire because traders cannot handle
the stress of executed trade. Systematic trades do not consider TIME as a
factor of influence, and that's the reason backtested Systems do not deliver
similar results.
We are moving forward to our weekly daily ZodiacAnalyst TimeMap.
Stand-alone Day, Tithi, Nakshatra, Planet positions, or astronomical phenomena
do not give the results; we use pair Tithi & Nakshatra, or Day & Tithi,
or even Planet positions, use present technical status to filter the trade of
the week or day.
October 30, 2023: Monday: Tithi- K.2: Kruttika: Avoid long-term
Investment.
Moon in Nakshatra Kruttika – Kruti (Action) Ka (why), before
taking any action, do a quick introspective check – why am I doing this trade
or transaction? In other words, slightly delay your unplanned activities.
Divergence indicators give the best results under the influence of Nakshatra
Kruttika.
October 31, 2023: Tuesday: Tithi-K.3: Rohini: Volatile Day
Tithi of the day gives directional movement and has a more
positive bias towards bullish sentiment. If markets close negative on the
previous day, Tithi 3 delivers the best results.
Moon Nakshatra is soft, and participants would prefer safer stocks
and try to remain in their comfort zones. The sugar sector and home decor
companies could attract speculative interest.
The buy and Sell strategy would give better results.
November 1, 2023: Wednesday: Tithi-4: Mrugga: Auspicious Day
Tithi-4 - 4 is the most deceptive of all the Tithis, and Nakshatra
Mrugga is the most ferocious and fast; it is a lethal combination. Only
seasoned players can read the market signals, and the majority will be
surprised and find themselves on the wrong foot. Momentum breakouts give the
best results; participating in a trade after signal confirmation will improve
efficiency/profits. BTST recommended.
November 2, 2023: Thursday: Tithi-5: Aardra: Volatile Move.
Tithi-5 gives the best momentum. Nakshatra Aardra is known for an
excess on both sides, negative or positive, and the combination effect is huge
spike trades, either at the top or bottom. So, the above combination gives a
hammer pattern with a long handle, a reversal. Mean reversion trades oversold
and bought indicators can provide the best results.
November
3, 2023: Friday: Tithi-6: Punervasu: Auspicious Investment Day.
Tithi-6 gives more pullbacks or corrective movement in the
markets. The meaning of Nakshatra Punervasu is revival, reinstatement, or, in
market language, turnaround stories. Large-cap stocks would see heavy activity
and cannot rule out massive volumes in the market.
Big institutional investors would be very active, stake sale or
takeover, big merger news should not surprise. SUN 180 JUPITER, a significant
index signal, would get triggered today.
Futurologist
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