Dalal Street will heave a sigh of relief as Samvat 2065 of the Hindu calendar draws to a close in October, what with the markets resurrecting to 16,600 levels – an over 100 per cent gain from its October 2008 lows. More importantly, it will banish the blues of Samvat 2064 that saw the Sensex lose 55 per cent, the worst-ever percentage loss since the index was constituted in 1986. On October 17, as brokers invoke the ultimate wealth creator, Goddess Lakshmi, they will fervently pray that the magic on the Street continues unabated into the new year as well.

Shankar Sharma, director and chief global strategist of First Global, believes that “good karma” played a part last year. Now, investors will also be spurred by signals from zodiac signs, which indicate that the worst is over.

“The signs suggest that the world economy will be out of the blues by 2011,” says Dharmesh Joshi, senior astrologer at GaneshaSpeaks.com. But the recovery will take a while longer, for there could be some turbulence yet. Mahesh Gowande, who runs an equity futurologist service, points out that the exit of Jupiter from Capricorn on December 19, suggests more write-downs and bankruptcies that will hurt the financial markets one more time.

After Jupiter transits into Aquarius on December 19, volatility in the market will rise and overseas inflows will increase. Nifty futures will clock higher volumes. Aquarius underlines speculative and gambling tendencies and Jupiter represents large institutions.

Joshi says the signs are that the Nifty could suffer a knock almost immediately after Diwali. “There will be a correction in the second half of October 2009, after which the markets will be adrift,” says Joshi.

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Star points

Some periods of significant movement in the market over the next year

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Gowande, whose equity futurologist service runs from Mumbai under the name StockZodiac, thinks the danger lurks in early 2010. “The markets will have a fast and volatile fall in between January and May and there’s a bright possibility that we may see weekly double bottoms on charts,” he says. Gowande’s January target for the Nifty is in the 5,250-5,450 range.

Major stars

The astrologers believe that 2010 will produce multi-baggers in sectors like logistics, insurance, auto ancillaries, the print media, pharma and technology. The best large-cap sectors will be power generation, PSU refineries, irrigation infrastructure, and small PSU banks. Hedge funds, too, are expected to make a strong comeback, after suffering a huge setback in the past two years.

There will be a correction in the second half of October 2009, after which the markets will stay adriftDharmesh Joshi, Senior astrologer GaneshaSpeaks.com

But not much will happen till end-May 2010 as low confidence is likely to keep the Nifty range-bound, Gowande thinks. The markets will not make directional moves unless confidence and aggression is very high. “A new high is expected towards the end of 2010 and the chances are much better in the first quarter of 2011,” he says.

According to Gowande, the transit of Mars to Leo will give a huge upside and the Saturn-Mars conjunction around September-October next year could trap short-sellers. Joshi believes there will be a negative trend in the last quarter of 2010 that could create panic among investors.

That’s when what most investors hope for is likely to happen. “More money will flow into equities as the risk appetite increases dramatically,” Gowande says. Overall, the best stocks will come from the software sector, while FMCGs, like ITC, HUL, P&G and Nestle, will give safe and fairly good returns.

Autos take a breather

After a breathtaking performance last year, automobiles, cement, and metal stocks are expected to take a breather. In the case of sugar, Gowande expects a cyclical top-out. “This doesn’t mean that there will be no further rise in the price of sugar stocks, but the sector will witness a sell-off in panic,” Gowande explains.

Stock-specific action is expected to be at its highest in November, when Rahu, the shadow planet, but very important in the Hindu astrological system, shifts to Sagittarius.

Real estate, retail struggle

Mars, which transited to the house of Cancer on October 5, is positive for textiles, distilleries and the hotel industry. Metals and silver will see speculative activity.

A new high is expected towards the end of 2010, and the chances are much better in the first quarter of 2011Mahesh Gowande, Equity futurologist

Importantly, it seems, that the hype in the real estate sector is unlikely to sustain and it will form a double-top pattern on the charts. “Few deals might happen at higher rates, but more transactions will be completed at discounted prices,” says Gowande. Similarly Venus, the planet which marks the fortunes of the much-roiled retail sector, transits this month to Virgo, its fall sign. Hence, says Joshi, the sector is expected to remain afflicted in the next year also.

The sign suggests that the government and regulatory bodies will pay more attention to improve domestic social conditions and conserve natural resources. Huge spending on infrastructure and social awareness programmes will be undertaken. The transit bodes well for oil stocks and companies working in the defence sector will be especially benefited in the first half of 2010.

Matter of intelligence

Investors will be excited to also know that valuations of insurance companies would see a big upside, adding huge value to their parent companies. “Investors could make three to five times more money in the sector,” says Gowande. Pharma companies involved in vaccines, KPO and bulk drugs also stand to gain from Saturn’s transit in Virgo. As the engineering sector bounces back, infrastructure projects like irrigation and mega hydro projects will be best investment ideas.

There’s good news for investors in alternative asset classes as well. “The future of gold appears bright. It is expected to be in the range of Rs 14,500 and Rs 17,500 per 10 grammes,” Joshi points out.

Saturn transiting into the house of Virgo on September 9 is good news for the analyst fraternity, and it is expected to remain there through the entire 2010. Virgo denotes intelligence, excellent analytical skills, a sharp memory, and people born under this sign turn into good technical and fundamental analysts. “Those who have been unable to take a firm view of late will be able to perform much better due to Saturn, which will give them confidence and mental stability to form an opinion and give advice,” adds Gowande.