Review – Last week, everything was going as expected, Jupiter and Venus misguided us, and my reading of the day went wrong, we were expecting some senior person may say something because of which sentiment might turn bad, and markets could witness a sell-off, while what happened was the reverse. We could identify the high ENERGY day of the week but missed the direction.
Technical – All the hourly, and daily sell signals turned positive or gave a divergence on 22nd May, and 23rd markets closed at a new high. Large Funds & big investors who had built huge, short positions to hedge the election uncertainty, were forced to square up or cut positions to restrict the hedging losses.
After the day's high closing, the next day was negative, and as expected Friday's market opening was slightly low. Intraday efforts to scale a new high were followed by systematic profit booking to end the day in the red. Technically, markets are back in full bullish mode, remaining positive is the wise move, and avoid contrarian trades unless the trade setup is in favor.
The short-term exit stop is at 21,770, Invest around 22,507, and 22,195 can be initiated with a target of 23,310, 23,682, and the final target of the year is 24,271. One should take proper advice, consult, and determine based on individual risk appetite judgment. The short-term targets are 5 to 9 months from the trigger, which was last week. The above setup is based on daily and weekly patterns. Now the reversal trigger levels are 22,050, and 21950 could give major confirmation of a sell and bearish trend.
TimeMap – Sun will ingress Nakshatra Rohini on the 25th, it is a bit soft phase of nature, and markets have more often remained choppy and balanced under the influence of Nakshatra Rohini.
In the coming week, the FMCG, and Steel sectors slightly positive, companies having a long history and clean management with adaptive approaches & finally close to promoters' hearts are coming in as positive.
In our forecast for the week of May 27th to May 31st, from the data set of 31 observations using various Astronomical positions, we noted the Index has given a positive close of 64 percent, and a negative closing of 36 percent of the time, from the Monday opening levels to Friday closing basis. The range of index movement has been negative -2.5 to 4 percent positive, no major high or low was marked, and average movement has been 1.85 percent of index movement.
The following weekly forecast is not about bullish or bearish, it is about appropriate action taken today that will give a better outcome in the future. We try our best to add bullish or bearish using TimeMap. Remember Technical and TimeMap are just tools using them we try to give the best action plans according to our analysis and judgment.
Weekly day forecast
May 27, 2024: Monday: K.4: P. Shadha 10.14/U.Shadha: Auspicious to SELL
Profit booking and selling will give better results. Tithi 4 or Chaturthi creates confusion, and intraday signals misguide. Do not try to be contrarian. The best option is to be with the trend – just delay the participation. The 2nd confirmation signal gives a late entry, but it will improve the strike ratio of the day. STBT is highly recommended.
May 28, 2024: Tuesday: K.5: U. Shadha-9.33/Shravan: Good day
Tithi 5th gives the best breakout momentum trades, gap down or gap up above the major compressed zone, gives the best-trended trades, traders should participate in the same direction of the trend. A little late entry does not matter as long it is in favour, late entry will on reduce share of profit. BTST in the market flows is highly recommended.
May 29, 2024: Wednesday: K.6: Dhanishta: Positive for trading.
Tithi gives nice pullback or reversal trades; one can say contrarian trades. For the trading, it will be nice to have mean reversion & long-short basket trades. Nakshatra is positive for Cement and pharma companies, and negative for equipment & engineering companies. Avoid overnight trades.
May 30, 2024: Thursday: K.7: Shatataraka: Bad Day
TimeMap is bad but it does not mean negative. It simply means decision-making is slightly difficult and making money is tough. Keep the trades size, small do not enter multiple trades, restrict activity and be more careful on such days. A well-planned structured, and efficient traders can mint money. BTST/STBT is extremely selective in turnaround services.
May 31, 2024: Friday: K.8: P. Bhadrapada: Major reversal Day.
Tithi gives extreme reversal points, turnaround surprises, and the best risk-reward trades. Nakshatra has given the finest sell trades. How to use the above two points: Look for a nice over-extended expensive stock and look for a reversal signal, and then initiate a SELL position trade for intraday and on the Daily chart for the 2-week trade life.
The power sector and Select defence sector stocks would qualify for the sell trade. Buy trades in Speciality chemicals, Agrochemicals and finally select NBFC stocks.
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