Stockology: Selling pressure intensifies as patience wanes

The market is currently experiencing significant selling pressure as both investors and traders grow increasingly impatient. Based on the current pattern, short sellers are likely to book profits in the 23,300–22,850 range, while the upside trailing stop is around 25,430.

Key Insights for the Week:

Forceful Unwinding Expected: In the first three days of the week, we anticipate strong unwinding, which might present opportunities for contrarian strategies and reversal trades.

Technical Analysis: It's crucial not to anticipate support levels, as markets rarely bottom out at predicted support points. The ongoing trend suggests further price declines due to intensified selling pressure and diminishing new inflows. The Nifty might drop an additional 700 points, though the exact timing remains uncertain.

Last Week's Review

In our previous column, we highlighted a bearish trend in the TimeMap and suggested viewing the Thursday sell-off as an investment opportunity. Technical charts often reflect the actions of the majority, who consistently lose money. Following these charts without deeper analysis can lead to similar outcomes.

TimeMap Predictions

Jupiter 180 Mercury: Slightly negative for traders. Expect significant price movements in the banking sector, likely driven by government announcements.

Venus 60 Saturn: Positive for FMCG and consumer stocks.

Daily Forecast

November 18, 2024 (Monday): K.3 Mrugga

Outlook: Expect a higher opening with large movements. High-beta and technology stocks are likely to see significant investments. STBT (sell today, buy tomorrow) is recommended.

November 19, 2024 (Tuesday): K.4 Aardra

Outlook: Typically a bearish day, with potential traps for bulls. A negative opening might signal a big fall, whereas a positive start could end in a positive close. BTST (buy today, sell tomorrow) is advised.

November 20, 2024 (Wednesday): K.5 Punervasu

Outlook: Anticipate a flat-to-negative opening followed by a potential V-shaped recovery. A good day for investing in fundamentally strong bearish stocks.

November 21, 2024 (Thursday): K.6 Pushya

Outlook: Markets are expected to rise. Day traders are encouraged to accumulate during consolidation and oversold conditions.

November 22, 2024 (Friday): K.7 Ashlesha

Outlook: Bullish with violent movements. Trend-following strategies are recommended. Quick adjustments are essential to avoid severe losses.

Summary: This week is likely to be volatile with significant movements, making reversal points hard to trade. Investors should consider delayed participation or second-confirmation strategies, except on Monday. Contrarian bottom fishing is advised with solid fundamental backing.

Disclaimer: The views expressed are those of the author and do not necessarily reflect the opinions of Moneycontrol.com. Always consult with certified experts before making investment decisions.