For the Week of June 29 to July 03, 2020

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107


In our observations final week, we had anticipated Nifty to maneuver up within the week of June 22 to 26.We had additionally noticed that the up-move is getting stretched.Since Mercury retrograde interval was operational we had determined to maintain reserving income and guard towards false strikes.
From 10277, Nifty had moved as much as 10533 earlier than declining and shutting the week at 10383.
Apparently, there was an Inter-market Divergence between Nifty and the Dow as seen from the underside of Might 18 onwards:

Nifty has superior practically 16% to the Dow.
FII flows has been adequate. One cause might be the Greenback weak spot from 103 to 97.

. After a sustained bout of shopping for between June 17 and 24, we see some promoting solely on the final two days of earlier week, on June 25 and 26.
So how does the approaching week appear like?
To reach at a correct conclusion, allow us to take a look at some long run cycles.

Nifty has been guided by 4 yr cycles which have generally expanded to 60 months or contracted to simply 19 months.

We’re simply 3 months into the brand new cycle and so forth a month-to-month cycle degree, there may be some extra bullishness left.As talked about on the chart, the present cycle might go as much as September 2020 with a high wherever between July and September 2020.

If we take a look at the earlier extreme decline in costs, in 2008, a 36 month up transfer was corrected in 9 months.

In 2020, value decline of simply two months corrected costs seen 46 months in the past.So the worth decline justifies a big backside categorization. In different phrases, this 2020 backside might keep put for fairly some time.

So whereas the month-to-month cycle appears bullish, the weekly appears like a correction is within the offing.With 5 weeks of upmove already accomplished, a breather is in truth fairly wholesome.

On the day by day cycle ranges additionally we glance to see a correction into July 06 to 09.
A number of astro features are additionally coming into play proper now.
Venus has turned Direct and Mercury completes its mid level of retrograde on June 30 /July 01.Mars is aspected by Retrograde Saturn and Jupiter strikes again into Sagittarius.
After a dip this week, Nifty might try to maneuver as much as 10500 after which begin an even bigger correction.

  Classical patterns and Bearish Divergence on RSI additionally level out the identical…

Look to 10030 ranges first after which 9900 ranges.
Our expectation is that submit correction Nifty is poised  to maneuver larger in July 2020.

God Bless and keep protected!