1. Volatility is going to increase. 2. Nifty has stiff resistance overhead.
Nifty opened at 10851 on July 13th, and went down to 10563 in the next three days and in the final two days ( July 16th and 17th ) moved up to a high of 10933 before closing the week at 10901.70.
Nifty closes at its highest post March 23, 2020.
Coming to cycles, Nifty has completed 43 days in its current cycle.
The fifth sub cycle ( anticipating this to be the last in this cycle ) has started upwards and completed three days.It has taken out the last sub cycle high of 10894.So immediately Nifty looks to move higher.
However there are several overhead resistances to be overcome.
Last week we had completed the oppositions of Sun and Jupiter as well as Sun and Pluto. On Monday, July 20th, we have the last of the trio, Sun opposite Saturn, the most stressful of the lot.
Soon Moon will join Sun in Cancer to oppose Saturn.
Things are never quiet in Cancer, especially if Saturn is transiting in Capricorn opposing it.This will add to the volatility of the markets.
Venus which was hitherto quite slow shall start picking up speed till it reaches its maximum by January 26, 2021. Venus is the queen of Taurus and she always likes excitement like her neighbor, Mercury.
Another factor to consider is the Inter-market Divergence between indices...
We find Nifty and Dow Jones have gone up but Shanghai Index and Nasdaq have dropped.Such divergences are always a sign of caution.
Saturn may possibly bring in a reality check this week. If prices drop for a few days it is a great opportunity to buy because the world is still immersed in Neptunian fantasies !
Play safe! Stay Safe!
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