Nifty Astro Technicals Nov 03 to 07, 2014

We saw an unbelievable week of trading go by. Markets all over the world just exploded upwards, catching most people by surprise. FOMC`s withdrawal of QE hardly made any ripple while the Bank of Japan`s reintroduction of QE was wildly welcomed.
As usual we will see the cycles, followed by an astro update.Since Iam updating nearly regularly, Iam doing away with elaborate week end reports.
Here is the cycles update....

I have cleared up the chart and have introduced a simple nomenclature so that we can follow the cycles easily.We will stay with hourly charts and gradually include daily, weekly and monthly cycles.This is because our primary entry and exit points are the hourly charts.
Our first observation is that
1.Blue cycle r was right translated and predictably proved bearish.
2.Blue cycle r bottomed out at wave point x, on October 17th, along with its sub cycles, p and q.
3.Thereafter wave r1 started.
4.Normally a cycle starts out with some basing formation and low momentum.Often there by a secondary spike down as well.However r1 started off with a gap up, which meant that the momentum in r1 cycle was going to be bigger than normal.
5. We understand a cycle better, by analysing its sub cycles.So we look at p1 and q1.
6.Immediately we observe p1 was a right translation. So we now have two clues, a. p1 opened with a gap up.2. p1 was right translated. So the bigger cycle was going to be bullish.
7. When p1 bottomed out, Nifty hourly did make a few negative bars, around the 8000 level, which actually was the third clue. That if a sub cycle bottom is shallow, then the next move will be  explosive.The converse would be if a left translated cycle makes a lower top, then the decline which will follow ought to be very bearish.
8.When q1 began, the move was explosive. Even after the halfway mark, the wave continues to be heavily bullish.
So we conclude that cycle r1 is heavily right translated and so the next cycle r2 of 80 bars may be bullish.The possibilities of q1,r1 and the larger cycle s getting phased out or postponed is high. This means the cycle bottom may not be on Nov3, but may extend some more days. However, since the larger cycle s is due, a low is definitely round the corner.
From a trading perspective, new purchases may not be initiated. I have shown two parallel trend lines. The third inner trend line is literally skywards. Break of this trend line is first stage confirmation that this cycle top ( not market top for God`s sake!)  is in place.Break of the channel is the second confirmation that Nifty Hourly is looking to form a bottom.Long positions maybe liquidated, but not confident of shorts yet.Since we expect the next cycle also to be bullish, this bottom can be used to re enter longs.
I do hope this format is useful. Please send me your observations.
Do note Iam also learning alongwith you. So any mistakes, errors and omissions may be pardoned!

Nifty Neowave Update 30 October 2014

Here are the updated wave counts for Nifty:

Hourly Cycles have been updated here.

 Observe how Nifty is behaving to the second cycle pointed out in small blue arrows. The mustard colour square represents the middle area of the cycle. This time band reduces volatility and prices may sometimes decline also.
Cycles are prone for displacement. So November 03 can be 5 also.If Nifty comes near a downcycle, it is better to be alert, in case of any breakdown.

Nifty Cycles update October 29, 2014

When Nifty touched 5097, it reached the highest point so far since the bottom of 7724.The aqua cycles represent 40 day cycles.Since we have completed 63 bars so far, we may safely surmise that the entire aqua cycle is now right translating.This is very clear when we compare the market behaviour during the past aqua cycle.
This means the current trend has reached maturity levels and the risk reward ratio is not in favour of buying.This also means that  the next aqua cycle is most probably going to be bullish. And we may expect Nifty to now form a higher bottom.
In the very short term, if hourly bar closes below 8053, we may go short.
And once Nifty reverses, we may buy for positional trading.

Nifty Hourly Cycles Update October 28, 2014

The current cycle has crossed the half way mark and is still bullish. The current hourly bars are quite far away from the time line. However the bars have fallen out of the steep rise trendline. This means the momentum has slowed, despite an upmove today.Since the cycle top is near, we may expect some correction.
Watch out for a good bar reversal  or three continuous lower tops and bottoms on the hourly, to reverse long positions.
The momentum charts till a similar story. Reading together, we get a number of trade set ups.
Importantly, after a low in early November, we may expect a good rise, looking at the Weekly charts.

We will look at the wave counts tomorrow.

Nifty Cycles updated October 27, 2014

Now, we can clearly see the cycle turning.After a spike to 8064,Nifty has turned back.Mustard coloured highlighted area, is a small cluster of 20 hour cycle bottoming alongwith a possible larger cycle. I say possible because it is unclear how it will react yet. But we see the cycle has definitely turned down in the hourly and that is what matters for now.Today was a day for shorts.The first target seems to be the 7920-30 area. That corresponds to the first time line  area. ( Blue line). If Nifty accelerates down this timeline, then also the trend is affected and we wait for a larger correction.
If Nifty bouncesd from the time line, then also be ready for one more shorting opportunity. We recommend shorts because the cycle has turned down.It is seemingly down till November 3rd or 5th.
Please note we are trading now without any astrology or Neo wave! Our bottom line is to make money and all stuff available to us are only tools.

Nifty Astro Technicals October 27 to 31

Here are the updated Neo wave counts...

Time price square outs suggest that if may be difficult to go below 7724, but then we are in a time band of heightened volatility.

Nifty`s break out from 7724 has happened at an 81 degree upward slope. In two leaps, it had taken out both the 45 degree down lines from previous peaks. Unless something very dramatic happens, it is hard to visualise Nifty going below 7724 immediately.7900 and 7850 look likely downside targets.C wave mentioned above should terminate here, if Nifty obliges.
Being in the market, we should of course be prepared for any eventuality and have adequate protection of our positions.
Astrological Picture for the forth coming week...

For the past several weeks, I had been highlighting the destabilising effect of Rahu, when first Mercury was conjunct with her, then Sun , then Venus and then Mercury again when he was retrograde. Now for the last time Mercury will again conjunct with Rahu this week. This can have a negative impact on the market. Mercury is the significator for communication and he is conjunct with Rahu on Oct 29/30. This happens to be the day of FOMC meeting.
Coming to Mercury again, we had observed that when Mercury went retrograde on October 04, no change in trend happened. Nifty continued to drift down when the markets opened after Puja holidays. We have seen that if a trend change does not happen when Mercury goes retrograde, then it will happen during the mid period. Accordingly we saw a bottom at 7724 on October 17.
Another factor was the powerful Sun Pluto followed by Venus Pluto squares which were indicating bottoms. Look at the reversals everywhere. They are quite powerful is it not?
Coming back to Mercury, when he becomes direct, the trend will change again. So a top formation is round the corner. Now add Rahu`s destabilising effect, and we could have a quick down move.
Redeeming factors from a bull`s point of view is that Jupiter is sextile to Rahu and Mercury and trine to Ketu. So the damage will be contained. Also both Ketu and Jupiter are in Mercury stars. Now that Mercury becomes direct, energy flows might improve.
I had also pointed out in a different post, the effect of Solar Eclipse. That also points to a bottom formation after the eclipse. So all told the coming week will be very volatile and the bias is negative.
Mars is going into extreme declination. That is another negative.Mercury also is moving slowly. It has to pick up speed if things have to improve.Sun is in debilitation, in Libra.
Time cycle wise. November 3 to 5 seems to be a bottom formation time..
There are several interesting trends in the coming weeks...
Jupiter is going to square Venus, Sun and Mercury.Mars and Pluto are going to conjunct and then Mars will square Uranus.
All three fast moving planets will have to meet Saturn in Scorpio.
But those can be examined in a separate post.
Stay well and prosperous!

October 23, 2014 Cycle Update

I have updated all hourly bars till today..
Interesting to see the hourly rising from the October 17 bottom.The elliptical path is illusory and has no relevance.Now the bars are near to the blue cycle top. So momentum should decrease and reversal may happen. 7930 is the first support followed by 7860.
On Monday, if we see a bar reversal, that is if the hourly bar closes lower than the previous  bar low, then we can safely short till the levels mentioned above.
If Nifty strengthens on 27th also or is  flat, then the next bottom should be expected around 7860 levels.If 7860 does not hold then it is back to 7720  levels.Expected date of this bottom is around November 03, 2014.
Since Nifty has gapped out of the downward blue trend line, it is highly unlikely that 7720 will be broken.
Si if we see a bottom in hourly the next cycle is about to begin and we can confidently buy.

Nifty Astro- Saturn`s movement into Scorpio

On November 02, 2104,Sunday,at 02:05:45 am, Saturn moves from Libra into Scorpio.He remains in Scorpio, till October 25,2017, Wednesday,03:37:53 pm.That is for a full 3 years.
Now, our interest is how could this period be for the markets?
Iam sure we are interested to know, at least how it will be for the coming quarter, right?
I just went back to see how our market performed during the last sojourn of Saturn in Scorpio. Our Nifty was not even born then and so I had looked up at Sensex.
Since Saturn takes 30 years to complete the zodiac of 12 signs, the last time he was in Scorpio, was in 1984 December, till 1987 December.
Have a look at this chart...

Saturn in Scorpio, was very positive!
He took the market from 250 odd levels,( 250, my goodness! Sensex which is at 26,787, was such a small baby then!) to 650+ and brought it down to 400+, by the time he left Scorpio.
Of course Saturn alone was not responsible for this, but he is an important member of the larger council of planets who very definitely have a say in the way the world is influenced. So we may expect Saturnian influence to prevail.
So what observations can we make?
1. Saturn in Scorpio is definitely positive for equity markets especially in the initial stages.
2. His initial retro period is not a problem.
3. But when other major planets also get involved in creating an energy vortex by their positions and by their aspects to one another, then things could get ugly.
4. When Saturn becomes stationary direct, then the trend resumes once again.
5. If the longer retrograde period of Saturn coincides with other long term planetary aspects, then major trend changes happen in the markets.

Let us look at the skies in November 2014:
Apart from a Mars Pluto conjunction, a Pluto Uranus square triggered by a Venus Uranus square,there is not enough powder keg to ignite the markets downwards.Mars Pluto conjunction is no joke, but it may not provoke a prolonged decline yet.
On December 08, 2014, Jupiter turns retrograde.First sign of trouble.
Throughout the month, Venus, Mercury and Sun trigger the Pluto Uranus axis and cause issues regarding debt, deflation and transformation to be brought to the fore front.
On January 15, 2015, we see bigger planets getting into the act.
1.Pluto Uranus axis is triggered by Ketu and Rahu,which is Uranus conjunct Ketu  opposing Rahu and square Pluto.
2. On 16th Jan Mars will square Saturn.
With Jupiter also retrograde, the scenario is fast deteriorating.

To conclude, Saturn in Scorpio ought to be positive, at least in the initial stages.
When major planets get involved in January 2015, uptrend could die rapidly.
So it appears that the markets could go up till January 2015 by which time, large planets get into action and a trend change could happen.
By August 03, 2015, Saturn becomes stationary direct once again and that could start a final upleg, which could take the markets into 2016.
1992-2000-2008-  2016--this sequence could get activated then!
This is just an empirical understanding. Let us use this information along with other technical tools to get better conviction.
This is what I had been writing in this space since the last two months.
Please give your valuable comments.

Nifty and the Eclipses- An Analysis

We had a total Lunar Eclipse on October 08, 2014 and now we have a partial Solar Eclipse on the night of October 23, 2014, ( morning of 24th in fact) between 1.08 am and 5.22 am.
Now eclipses have been coming and going and every time one comes up there is a lot of speculation as to what effect it could have on us and especially on the Financial Markets.
A Solar Eclipse occurs only when a New Moon occurs. In fact a solar eclipse is nothing but a specialized type of New Moon or Amavasya as we call it in India.
As traders our interest is in knowing what was the effect of these eclipses on Nifty in the past years.
I have simply plotted the Eclipse dates on to Nifty daily and here is what we see...

The chart is a daily from May 2012 to the present date.
Red lines indicate Solar Eclipses and Black lines indicate Lunar Eclipses.
There are some interesting observations to be made:

1. Only in May 2012, we had a solar eclipse followed by a Lunar Eclipse.
2. Between April 25 and May 25, 2013,we had two lunar eclipses with a Solar Eclipse in between.
3. Rest of the cases are of lunar eclipse first followed by solar eclipse.
4. When the Solar Eclipse comes first of the duo, market reversal happens within the time zone of the eclipses and mostly the trend continues.
5. A triple combination as seen between April 25 and May 25 2013, definitely destabilises the market and causes an intermediate trend reversal.
6. In cases of lunar first and solar next, during these phases, the market goes straight past the New Moon till the date of Eclipse and reverses direction only after the Solar Eclipse.
7. In all cases where it is Lunar first followed by Solar, the trend continues in the original direction. So the eclipses act as sort of a speed breaker to the trend.This is only to be expected because Eclipses reduce the energies of the luminaries, Sun and the Moon, at least temporarily.

This eclipse is happening when Rahu is in Virgo. So I thought it would be a good idea to go back 18 years and see what happened when Rahu was in Virgo last time......

The trend in 1996 was an intermediate  (or long term?) down trend and we had a lunar followed by a solar in September and October 1996.Market continued past the Full  Moon and reversed close to the Solar Eclipse and then after forming a top after the eclipse it continued with the original downtrend.

In October 2014, also the market continued past the Full Moon of October 08 and formed a seeming reversal on October 17, 2014.It has been rising since then.

So there is every possibility that we form a top after the Solar Eclipse and decline to a bottom.

1. And if this bottom, post the eclipse is higher than 7724, then the original bull trend continues till the year end.
2. If the bottom post the eclipse breaks 7724, then we are going down till the year end. 

Of course, we want one answer.

Which of these has a better possibility?

For that we examine the day charts of solar eclipse day in 1996 and in 2014...

First set of charts pertain to 2014 October and below that we have the 1996 charts.

During the eclipse, Sun, Moon and Venus are literally one on top of each other in Libra.All of them are in Mars star.Mercury is afflicted by Rahu, but direction wise Rahu and Mercury are in alignment.Rahu is also in Mars star. Mars is in the star of Ketu. Malefic power is more and so a decline is round the corner.

But, but, but, both Sun and Venus had formed squares in Pluto and both of them indicated a powerful bottom. I had been writing about this for quite some time now.

This happened from  October 04 to 06 and by October 17 we were just 6 trading  days after the square. And so the powerful bottom of October 17 came to be. If so the decline indicated by the eclipses could only be able to form a higher bottom, post the eclipse.

So out of choices 1 and 2 I prefer 1.

There are some interesting correlations between 1996 and 2014. See the writing in black...

 

This also indicates that we may have an astro inversion coming up. That means post the eclipse, after a bottom, market should go up for some time to come !

This is just an empirical analysis. Please base your trades only on the basis of competent technical advice, after observing due stop losses.
Please write to me your observations.
 

Nifty Weekly Time and Price Squaring

This is interesting. Nifty has been hugging the 45 degree  upwards timeline, all this while from August 2013. Whenever there was a breach, it was a small affair, lasting some weeks, and then it was back again over the 45 line.
Same is the case now also. Nifty has strengthened above the 45 degree line

Weekly momentum has reached the oversold territory but is yet to turn up. Once it does, then Nifty will be showing strength above the 45 line.
That would mean that the uptrend continues.
Downside risk will increase if Nifty breaks 7800.