Stock Market Astrology XII

Stock Market Astrology Part XII

( Copyright G Kumar - 30/10/2003 )

The Nodal Cycle

The North Node of the Moon, or rather the Ascending Node of Luna, takes 18.6 years to make a circuit of the Zodiac. This is known as the sidereal period of the North Node. This 18 year business cycle is linked to economic cycles. The North Node in Taurus was responsible for the bear phase in the US, with the Dow falling from a high of 11300 to 9600 levels. Rise in the U S Stock Market was reported when the North Node transited Leo. As the North Node moves towards Aquarius in retrograde motion, we can see furthur bearishness in the US stock markets and the US indices will hit their Nadir in 2008 ! The Dow can fall to unjustifiably low levels !

In India's horoscope, the NN is now in Taurus, in the 10th. Rahu in the 10th is considered good and business normally gets a boost ( Veshoorane cha Balavanuragadhipa ). As the 10th rules business, the significations of the NN get a boost. The significations of NN are IT primarily. No wonder the software sector is doing well, posting a healthy 34% growth, with software scrips like IFlex, CMC, Satyam, Infosys, Wipro, HCL Infosys etc registering phenomenal gains ! They can appreciate furthur !

The Law of Cyclicality & Recurrence

There is a periodical recurrence of the rise and fall in stocks. It is clear that a natural law is at work, which governs stock movements. The manifestation of this Law of Peridiocity can be seen in the stocks which go on an uptrend & vice versa. For example, while SBI was advancing steadily, we found that IOC was steadily declining. The Law of Cyclicality was at work, sending a particular stock on the upward trend, while others were trending downward.

The Contrarian nature of the Stock Market

We find that the market moves against fundamentals ! When a Company announces good results, its stocks come down. Conversely when bad results are announced, vice versa happens. This contrarian nature of the Market has puzzled many. When a Company announces good results, the big players bear hammer the scrip to low levels. They themselves enter the scrip at low levels ! Conversely, they buy the scrips ( whose results are bad ) and increase the price of the scrip. At high levels they themselves offload the scrip !

Indian Economy to grow 6.9 %

The Investment Information and Credit Rating Agency (ICRA) said in its report that " With excellent monsoon and a likely new record agricultural output, fiscal 03-04 appears set to clock growth well in excess of 6.5%. Perhaps approaching 6.9%, the increase contributed by a sharp increase in agriculture GDP by as much as 9%." Expecting a record kharif crop at 110 million tonnes along with better oilseeds, sugarcane and cotton output, ICRA also said that the country is poised to post a record rabi harvest.

Corporate Earnings growth to drive Equity Market

The corporate earnings, expressed in growing profits, instead of re-rating of markets, would drive the activity on bourses and auto stocks would attract the maximum investor's interest, according DSP-Merryll Lynch
Automobile was the most preferred sector for investment amond the fund managers while the fast moving consumer goods stocks ( FMCG) were the least preferred. IT was the second preferred sector.

Banking was the only other sector where the fund managers held a clear positive outlook and continued to be bullish on commodities such as cement and petrochemicals. Commercial vehicles companies were expected to post 69 % year-on-year growth in earnings. Despite the bull run in stocks seen till date, the market was still perceived as undervalued. Close to 70 % of the fund managers believe that the markets are undervalued by 10-15 %.

Bajaj Auto has reported a 46.51% rise in net profit to 193.37 crores. ACC's net has gone up 444% to 27.88 crores. Satyam Computers' net has gone up by 24% to 147.59 crores. Tata Power's net has gone up by 26% to 170.81 crores. Grasim's net has gone up 58% to 202 crores. Andhra Bank's net has gone up more than 100%. Indian Overseas Bank' net is up 76% at 154 crores. Syndicate Bank reported a 143 crore net profit. Union Bank's net is up 65% at 170 crores

The Primary Market

You can apply for the new issues - like bank shares - in the primary market. UCO Bank listed at 20, even though the offer price was 10 + 2. When the primary trend is bullish, you can get easy profit. Other Bank issues also fared well. We suggest you should only apply when the primary trend is bullish. You may get allotment only after 1 month. So when you apply be sure that the market will be bullish when you get the allotment.

When get the allotment, sell immediately. Dont be greedy and hold out in the expectation of furthur gains. When you sell, your money is freed for recycling in other issues. That way, you can get good appreciation for your capital.

Horary Charts can be used for Trading

Yesterday when I went for trading, the checked the horary chart. Sagittarius was rising, with Moon and Gulika ( a satellite of Saturn) in the Ascendant, aspected powerfully by Jupiter. From 1000 to 1200 , it was Sagittarius which rose, from 12 to 2 Capricorn and from 2 to 03.30 PM Aquarius. As expected Sag was positive and the market opened with +30 points. At 1200 it began to recede ( Capricorn negative ) and the Sensex was showing minus. After 2 00 PM it went up ( Aquarius positive, with Jup in the 7th aspecting Aquarius ) and closed at 4742 !

I used this chart for trading and entered Bharti Tele at 83 and Telco at 362. I short sold HCL Info at 337 and covered it up later at 333. Bharti I sold for 86 and Telco ( it was the day when Telco announced a 251% hike in net profit ) for 367 at 0300 PM !

Today I knew that with Sag rising at 09.55 Am, the market can only be positive. I entered OBC at 233 and exited at 242. I entered PNB at 190 and exited at 196. I entered Bharti Tele at 86 and exited at 89. A gain of 18 points in just 3 hours !
Just shows how friendly a diagnostic tool Astrology can be when we deal with the volatile stock market !