Ever since we wrote the last article about how Nifty’s top was anticipated with astrology and mathematics, queries have been pouring in regarding the way ahead for markets. So, here we present the views for Nifty in foreseeable future, based totally, as per our understanding. We were spot on with our analysis of Nifty topping out at 12400-450 zone during Jan 2020 & before you all jump the gun, don’t forget that we too reserve the right to be wrong. Nevertheless, lets start with logic, astrology, mathematics and charts
Market Rhythm, Astrology & WD Gann
Market Cycle – In our last article, we had explained the precise rationale for expecting top in 12400-450 range which purely based on astrology and WD Gann’s methods. Continuing from there, its good time to remember that Nifty actually came into existence in April 1996. First major crash happened in 2000 (4 years from inception). Second Major crash happened in 2008 [12 (4*3) years from inception] and 3rd major that we are witnessing happened started in 2020 [24 (4*6) years from inception]. Accordingly, you may expect next major crash in (4*9 = 36) years from inception i.e. 2032. So on and so forth.
Astrology – Jupiter has a cycle of 12 years approximately going around the zodiac. So, from inception of nifty in 1996, if you add 12 years – you reach 2008 (surprised ??? there was a crash). Now add 12 years to 2008, you reach 2020. Is a Crash going on?? You bet – there is one. What’s the next expected year – add 12 years to 2020 – answer is 2032 again!!! Isn’t the harmony in nature, astrology and mathematics evident enough??
When will the market bottom In our previous article, we explained the 90 year cycle and what role did Saturn play in timing the top. Saturn has a 30year cycle in the zodiac and right now Saturn is transiting in Capricorn. There are certain calculations involving the nodes Rahu and Ketu as well but let’s not get into details here on that.
Let us make a call here – Based on calculation on transits of Saturn, Nodes (Rahu and Ketu), and Jupiter, Expect bottom around April 2022 – July 2022
WD Gann methods
Nifty started in April 1996 and based on Elliot wave structure (explained in next segment) we assume that market has completed its first major bull run spanning 24 years. There are 8694 calendar days between 1st April 1996 and 20th Jan 2020. WD Gann in his books said that price is time and time is price.
Now subtract 8694 from 12430. 12430-8694 = 3736 thereabouts for Nifty. Rings a bell? When UPA government won in May 2009, that is precisely the level from where the market had a circuit UP day
Also, in our previous article, we had touched upon Gann angle theories, importance of number 8, angle of 45 degrees and right-angled triangle. Based on calculations (which are beyond the scope of this article) we arrive at a range of 3110-3317 for Nifty as bottom
Market Structure and Gap theory
Whenever there is a huge spike day where the prices just jump or gap up because of a huge spread/mismatch in rates as offered by Buyers and Sellers, markets tend to return there as natural law. Case in point is the Corporate tax cut day in Sept 2019 when Nifty made a move of more than 600 points in a single day with ferocious move and prices kept on jumping the limits extraordinarily. Same situation happens during a circuit/limit day, whether up or down
Again, recollect that, when UPA returned to power in May 2009, there was a circuit up day from Nifty levels of 3700.As per this logic of Markets reversing as a natural law, we arrive at a value of Nifty 3700 approximately
Indian markets have a peculiar habit of retracing to 78.6% retracement levels on various time frames which is also a Fibonacci ratio. Also, the basic rule in Technical analysis based on teachings of Richard Schabacker, markets do tend to return to the First breakout point after consolidation.
In Nifty, there was a crash of 65% from top in 2008 and in 1929, Dow Jones Index crashed to 85-90% of its value. Taking a clue from both these crashes and other mathematical and planetary alignments, based on right angled triangle’s theory, we expect a crash of close to 70-75% at least from top.
75% of 12430 = 3107 Nifty
Coming to market structure and ElliottWave theory (feel free to google it), let’s have a look at the following chart and see the retracement levels.
Final Verdict – As per various calculations based on the above parameters, we expect the Nifty to bottom out around 3150-3350 zone around April to July 2022. This is purely an educational article and you may consult your financial advisor for Investing decisions. It is better to stay in cash or invest in Gold which as per our calculation would head towards 65000-70000 Rs/10 gram. Other big bet is USD INR heading to 87-90 range in times to come. Stay safe, stay wise