Part of newsletter sent on 1 June 2020
Major Planetary Conditions
From 1st June 2020 to 5th July 2020, there will be three eclipses. The first will be partial lunar eclipse on 5th June 2020 (from 23.15 HRS IST to 02.34 HRS IST -6 June 2020); not visible in India. This eclipse is not powerful. The second will be solar eclipse on 21st June 2020 (from 10.19 HRS IST to 14.02 HRS IST); it’ll be visible in India, parts of Africa, South Asia, China, South East Europe. The third eclipse will be lunar on 5th July 2020 (from 08.37 HRS IST to 11.22 HRS IST), not visible in India but North & South America, South West Europe, Western Africa. Apart from these three eclipse, six planets (Saturn, Jupiter, Venus, Rahu, Ketu & Pluto) are currently in retrograde emotion. On 18th June 2020, Mercury will retrograde. On 23rd June 2020, Neptune will turn retrograde. On 30th June 2020, retro Jupiter will move from Capricorn to Sagittarius. These retro planets and eclipse are going to lead man-made as well as natural disasters. US-China tension may worsen. Geopolitical tension may rise. India-Pakistan border tension may also increase. Major effects will be visible after 18th June 2020.
Until 17th June 2020, stock market may trade in bullish pattern and S&P500 may cross 3200.
The entire world is starting to reopen. A major wave is still due in July-August (as an after-effect of reopening). After first week of September 2020, a vaccine or some possible relief in this context may come into picture. Gradually, the cases of
coronavirus will decline. By December 2020, it’ll turn negligible. The earnings in subsequent two quarters will be deeply affected. GDP will see a major shrink for sure. USA & India may go to negative in GDP growth. In July-August, hyperinflation is very much of a possibility. Moon will be in Virgo-Libra-Scorpio for the week
USA Stock Market
The week ahead is overall bullish. Market opened gap down in today’s Asian hours. S&P500 made a low of 3008 while NASDAQ made a low of 9450 and DOW made a low of 25094. RUSSELL made a low of 1372. It is advised to cover short position in equity indices (DOW, S&P500, NASDAQ) and make 50% long position (in DOW, S&P500) at CMP. If S&P500 retests 2950 then remaining long is advised there. Target will be —. Either today or tomorrow, a correction is possible. Market may trade positive from Wednesday to Friday. On Friday, it is the Full Moon and Lunar eclipse (along with Scorpio Moon), market may experience heavy volatility. At higher level, profit booking is possible. However, next week is again positive. You can buy following stocks at dips: – AMAZON – NVIDIA – APPLE – TESLA – MICROSOFT – FORD – GM – WALT DISNEY – HOME DEPOT
Earnings of three companies are due this week:
ZOOM VIDEO (ZM) (on 2nd June after market closing) – the results are expected to be highly favorable. ZOOM VIDEO closed at 179.48 last week. If it does not breach 172 then it’ll move up to 195. SLACK TECHNOLOGY (WORK) – result will be announced on Thursday – 4th June- at market closing; on Friday, it closed at 35.05; it has support at 32.00 and can move up to 40-42. BROADCOM (AVGO) will also announce its result on 4th after market closing. The results are expected to be positive. It closed at 291.27 last week, considerable uptrend is possible.
In next three weeks, TESLA (TSLA) may move up to 900. Support lies at 780.
Indian Stock Market
Indian market shall trade volatile to positive for the day. Closing may be positive. On Tuesday, some uncertainty is possible. From Wednesday to Friday, it’ll again trade positive. On Friday, there is a chance of profit booking.
Intraday perspective: From 12.30 to 14.30 HRS, profit booking is possible. From 14.30 to 15.30 HRS, it’ll again trade positive.
BUY AT DIPS:
- TATA MOTORS
- TATA STEEL
- JSW STEEL
- HINDUSTAN UNILEVER
- BHARAT FORGE
- HDFC BANK
- ICICI BANK
- KOTAK BANK
- TATA CHEMICAL
- BAJAJ ELECTRIC