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ShareIndian stocks rose a modest 1% last week as investors positioned themselves ahead of Monday's budget announcement. After choppy trading for much of the week, the Sensex closed on Friday at 14,913 and the Nifty ended at 4424. While this bullish result was not unexpected, the week saw fewer gains than forecast, especially in the early week.
The forecast gains for the midweek Mercury-Venus-Jupiter alignment never really materialised as Tuesday saw substantial losses on the Moon-Mars aspect left over from Monday. Friday's session was also at odds with bearish expectations as the debilitated Moon in Scorpio only saw weakness manifest in the morning.
Interestingly, the afternoon rally coincided with a Moon-Jupiter aspect, which had sufficient strength to counteract any negativity from the Scorpio influence. The absence of significant upside last week from the triggering of the favourable Jupiter-Neptune aspect is a sign that its bullish influence may be on the wane.
With the Budget due out Monday, the planets appear to be pointing to a decline in its aftermath. The pullback could begin as soon as Monday's Moon-Pluto conjunction, although Monday morning has a chance for gains as the Moon will be positively influenced by Venus.
Tuesday's full moon is perhaps a better bet for a correction with Tuesday afternoon looking particularly negative as the Moon is aspected by destabilising Rahu. The Moon will form a weak, but positive, aspect with Jupiter Wednesday morning which could support prices somewhat, although there is a danger of profit-taking as the day wears on.
Thursday could be range-bound as the Moon transits Capricorn, while Friday may see gains, especially in the morning, as the Moon approaches a conjunction with benefic Jupiter. Friday has the added plus of the exact conjunction of Jupiter and Neptune, the two "rally planets" that have fuelled this powerful 75% rise off the March lows.
The failure to produce substantial gains last week increases the likelihood that July will see more downside than upside, especially with the solar eclipse due on July 22. Eclipses increase volatility and can indicate significant market reversals.
When eclipses occur with afflictions by malefic planets, then the market is more likely to weaken around the time of the eclipse. The upcoming eclipse does in fact feature a very close and negative aspect between Venus (happiness, money) and Saturn (loss, pessimism).
This is perhaps another sign that the current rally is unsustainable and stocks may be moving into some turbulent waters in the weeks and months ahead.
Crude oil fell over 3% last week as the midweek rally was not enough to offset the losses at the end of the week. While I thought some late week selling was likely, the failure of any move higher on the Venus-Jupiter-Neptune aspect makes one wonder just how long the rally in crude would last.
Volatility and a major price move are likely with the Mars aspect to Jupiter-Neptune on Tuesday and Wednesday, with declines being the probable outcome. Some recovery is likely later in the week.
Against expectations, gold slipped 1% last week and closed at $929. Tuesday's decline was the real outlier as the optimism from the Mercury-Venus aspect was not clearly reflected in the marketplace. This week, gold may decline in the early going on the Mars-Jupiter aspect, but some late week recovery is possible as the Sun moves deeper into Punarvasu.
Cosmic call
With the budget due out Monday, the planets appear to be pointing to a decline
in its aftermath
Tuesday's full moon is perhaps a better bet for a correction
Volatility and a major price move in crude are likely with the Mars aspect to Jupiter-Neptune onTuesday and Wednesday
This week, gold may decline in the early going on the Mars-Jupiter aspect, but
some late week recovery is possible
The author is a neo-Vedic astrologer specialising in predictive astrology. He runs the website www.modernvedicastrology.com
