Trade Setup for 2nd hour of 23rd May – Election results day
Broader Indices after opening bell touch the new highs in the market, Nifty trading higher at 11,93.4 up 1.72%, Sensex at 39795.62 gained 1.76%, the winner is Bank Nifty which gained 2.62% trading near 2.64%
However still the Nifty fall short of 12,000 mark, as global trade war hampering the major global indices along with Asian Peers on the verge of breaking 4 months low.
As of now, the counting is in full swing in more than 500+ seats (out of total 542 parliamentary constituencies). The trends after the first hour of counting indicate that BJP is leading towards a standalone majority.
The markets, as we had anticipated, opened with a bang and created a new high of 11967 on the Nifty. But, it has faced resistance at these levels. This suggests that there is a weakness on account of global cues. The global indices have been facing headwinds due to the trade wars between the two of largest economies of the world. The new Govt. is likely to face a spill-over effect of this global scenario.
The markets will wait and watch the response of the new Govt. in terms of the policy decisions that it will take to counter and manage these external challenges.
In the next hour of the trading session, there is likely to be a profit taking and consolidation in the market.