Monday, May 25, 2020

Week of May 26 to 29 2020

Last week we had expected bullishness this past week of May 18 to 22. While other markets turned bullish, Nifty chose to fall 313 points on May 18 and spent rest of the week recovering from the fall.
Let us look at some charts..
 Bank Nifty`s weakness has been pulling Nifty down consistently, because of the heavy weightage of banks in Nifty Index Even after 38 trading days we are yet to see a meaningful cycle bottom. This cycle bottom will also be the turning point for Nifty.We may reasonably expect to see a cycle bottom from Bank Nifty this week.
Topmost is Nasdaq 100, Candlestick is Dow, The next red line is Nifty and the bottom red line is Bank Nifty. We see heavy divergence based on the constituents of the Indices.
For our Nifty, recovery last week was not very convincing. Immediately taking out the Secondary top of last cycle, that of 9584 looks like a tall order. So we expect a rise from present position and a fall into June  01 or June 02 from which a meaningful rise should start.If the rise continues beyond May 26, then the next cycle belongs to bulls. 
Mercury Conjunct Venus is a long term indicator of change of acceleration in the markets.Hopefully low of May 18, is the low for this conjunction.
We are going through a slightly tricky phase. So have your protections on please.


Unknown said...

But sir BANKNIFTY broke the 18th may low

saikrishna yanduru said...

sureshji, cycle means how many days

dasaradha said...

namasthye guruji wow its so great to see u and ur blogs sir really so happy .how are you sir. wonder full iam so happy i have got great support again hope will success all the way with ur guideance

Tekkiesuresh said...

Thank you Reddy Gaaru for your sentiments. Hope to play a long innings this time!

Tekkiesuresh said...

Sai, cycles are never constant. They vary between 19 to 53 days. Last two cycles were of 34/35 day duration. We need to be watchful as to how they are forming because they give advance indication on future movements.