Election result is out and incumbent govt is ready to come in power but not as powerful before. After the media exaggerated mandate predictions market went up but on the day of result fell on its face and went in deep down to Nearly 8%.
On Wednesday when I am writing this article (2:20 PM IST)we market again up 3% to cheer Modi’s victory, but here is a catch, don’t trap. We can see on chart market has reached at its resistant zone of breakdown point and at 22500 level which may face a crucial resistant zone, just a day to go for expiry and I am expecting market to a sharp fall nearly 200 points. It would be surprising for me if market again make a correction on expiry.
Understanding the logic.
Who runs the market? Retails or Operator/institutions/HNIs
When market fell sharply yesterday they people did not get a chance to exit, so when market came down they found and opportunity to average their position and accumulate. After their accumulation and trapping the retails and small players and giving a fake faith in market and emotions and fomo they forced people to think in the way they (rich) can take benefit.
When market is going up and up their yesterday’s loss has been covered since they have huge money and they do averaging and when most are thinking that market will sustain and their are sufficient buyer to buy their sells order they will dump and dump. Here is the catch, when something unexpected happens we go in hope/emotions and our mind does not work rationally, and we leave the position it happens always with me and then finally our accounts get blown up.
Please mindful when there is exceptional events since that is time people loose most and rich become more rich.
Nifty50 Weekly expiry (6th June 2024) is possible below 22500
Dow Jones weekly view (3-7th June 2024)
Disclaimer:
Note: I am creating this article for learning purpose and make a data for myself. Any entry based on this will not create any liability on me and anyone/anything in concern with me.