Zomato: Analyzing a Potential Peak and Predicting Downside Risk

Zomato’s stock price recently peaked at 304.7 on December 9th, a level that technical analysis suggests might be a medium-term high. The stock is currently approaching a crucial support level of 266. A breach of this level could trigger a steeper decline, potentially targeting 244 and even 227.

For traders seeking higher risk, a short position could be considered. A potential entry point for this strategy would be a bounce towards the 290 level. This counterintuitive approach capitalizes on the expectation of a downward trend.

On TIME FRONT

“Tomorrow, December 27th, marks an important cycle date.”

The Convergence of Dates and the Subsequent NIFTY Crash

The NIFTY’s Descent: A Tale of Timing and Technicals

https://ganninsides.com/2024/12/18/nifty-index-breach-of-support-raises-breakdown-concerns/

“NIFTY experienced a significant breakdown below its critical support of 24,200 on spot on Wednesday. As discussed in the post shared above, the initial target of this major breakdown was projected at 23,800, which the index achieved quite easily.”

The past week witnessed a confluence of three significant time cycle dates – 17th, 19th, and 20th December – culminating in one of the most bearish weeks for Indian markets in the last two years. This bearish sentiment was reflected in the NIFTY’s volatile trading, with a weekly range exceeding 1200 points from Monday to Friday.”

“I have been anticipating this market decline for several days. The current downturn is unfolding as expected, both in terms of timing and severity. As previously mentioned, this leg lower is likely to be more impactful and potentially more dangerous than the declines witnessed in October and the first half of November. However, this major downtrend will likely unfold in phases, meaning that the market won’t decline consistently every day. Therefore, it’s crucial for traders to capitalize on any rallies that emerge to initiate fresh short positions.”

On PRICE FRONT

The NIFTY is likely to encounter resistance in the zone between 23,900 and 24,300 on spot. This range may act as a significant hurdle for any upward momentum in the index.”

On TIME FRONT

“The convergence of two significant time cycle dates next week, December 26th and 27th, is likely to heighten market volatility. Traders should anticipate wider intraday swings and increased price fluctuations during this period.”

“Broadly, I am expecting the NIFTY to drop significantly in the coming weeks and months. However, for the next few days, I would expect the NIFTY to take a breather first. Then, I anticipate a lower low below its November low of 23,263. Finally, it may break its 45-degree angle support of 23,100, which has been calculated from its September high. This would be its second attempt to break this support. And this time, I would expect the NIFTY to finally break through, opening up a genuine possibility for a drop towards its 90-degree angle support, which comes significantly lower. Let’s not discuss that for now.”

Time Cycles and Market Turmoil: S&P 500 and NVIDIA

The S&P 500 experienced a sharp decline yesterday following the FOMC meeting outcome. Prior to this decline, the index had been trading within a relatively narrow range, exhibiting sideways movement.”

https://ganninsides.com/2024/12/03/niftys-double-edged-sword-a-risky-play-for-traders/https://ganninsides.com/2024/12/03/niftys-double-edged-sword-a-risky-play-for-traders/

“We have been diligently monitoring the S&P 500, and I have consistently shared technical updates on its performance. Notably, on December 3rd, I published a post highlighting December 6th as a pivotal turning point based on time cycle analysis. Furthermore, I identified the price range of 6080 to 6120 as a critical resistance zone, aligning with the confluence of price and time-based forecasting models.”

“As anticipated, the index reached its peak on December 6th, reaching a high of 6100. Subsequently, the index exhibited a reversal in trend. Moving forward, the 5840 level assumes significant importance as a critical support level. A decisive break below this level would trigger a more pronounced downside move, with an initial target set at 5620. Further analysis and insights will be provided upon the breach of the 5840 support level. From a time cycle perspective, the next significant date to observe is January 2nd.”

Okay, let’s shift our focus to NVIDIA.

https://ganninsides.com/2024/12/13/nvidias-128-support-the-canary-in-the-coal-mine-for-the-market/

NVIDIA experienced a significant decline earlier this week, breaching the critical support level of 128. As I previously discussed on Friday, this breach had the potential to trigger broader ramifications within the tech sector. Yesterday’s trading session provided a glimpse into this potential impact.”

“On NVIDIA, I would be looking for levels of 110 and 90 over the course of the next few weeks. Markets globally are about to turn extremely volatile from here on, so it’s best not to get carried away with wide fluctuations. Eventually, markets should be headed lower from here.”

“The coming weeks promise a dynamic market environment for traders.”

“The Apollo Tyres Enigma: Unraveling Price Patterns”

APOLLOTYRES may have clocked a lower high at its December 9th high of 557. On the time front, December 9th was a critical cycle date. So, as long as the stock holds below its December 9th high, we would expect this stock to trend lower towards 495 and 465 on cash in the next few days. On the TIME front, the next critical cycle dates are due on January 1st and 2nd.

Nifty Index: Breach of Support Raises Breakdown Concerns

https://ganninsides.com/2024/12/13/niftys-volatile-descent/

“As anticipated last Friday, December 17th emerged as a pivotal turning point for Nifty and other NSE indices. This precipitated a sharp decline yesterday. Today’s breach of the 24,180 support level has unequivocally confirmed a significant breakdown, a scenario I’ve been highlighting for the past two weeks.”

“Today’s intraday low dipped below 24,180, raising concerns about a potential significant shift in market momentum. However, a decisive daily close below 24,200 is necessary to confirm a major breakdown. We await today’s closing price for a clearer picture of the market’s direction.”

“Should the market close below 24,200 today, it would strongly suggest a breakdown with an initial downside target of 23,800 on the spot market. Given the significance of tomorrow and Friday in the time cycle analysis, these dates will require close monitoring.”

NIFTY’s Volatile Descent

NIFTY broke the recent consolidation on the downside today, but in a highly volatile manner.

Yesterday, NIFTY registered its first daily close below the December 9th low of 24,580. This timely breach suggests a potential southward turn. However, a sustained break below the 9th December low is necessary to intensify the downside momentum and trigger a more significant reversal.

On the price front, as discussed on Monday, the major support zone for NIFTY lies between 24,200 and 24,400 on a spot basis. A closing price above this zone is likely to delay the reversal process and could even trigger a rally towards the 25,000-25,200 range in the near future.

The upcoming week is crucial for the overall market outlook. December 17th, 19th, and 20th mark significant turning points for several NSE indices. The next 45-60 days will be a period of intense market activity and potential volatility for all market participants.