Trade Strategy for mid-day of the Election results day
4 hours of counting has seen continued lead of the BJP led NDA with 320+ seats. As was anticipated by us, the markets continue to consolidate throughout the hour. The profit taking has brought the Nifty to test the support levels of 11820 levels.
It is expected that the markets will continue to find it difficult to sustain the levels above 11900. The INR has depreciated against the USD and is moving towards 70 level mark, which is a clear sign of global head winds.
Once the exuberance surrounding the election results starts to settle down, the markets will look at various macro and micro factors affecting the near term of the economy.
The consolidation & profit taking is expected to continue. If the Nifty breaches the support of the 11820 level, the next support level will be at 11720 levels. Once can look to short here while keeping an SL of 11850