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.