Since our last report published on 5th May 2019, Nifty is witnessing high volatility. During the fortnight, the index saw a sharp selloff from 11657 highs, during which, it broke the important support of 11550 and slipped to a low of 11108 (a fall of almost 500 points from its highs). Such sell off in Index was expected, once the important support of 11550 was broken, as the index spent the entire April month sideways between 11550 and 11850 range.
We had mentioned in our last report that once Nifty breaks 11550 , short term traders should exit their long positions on Nifty, as Nifty could then slide towards 11150‐11300 range sharply. The index touched a low of 11108 during the fortnight, but in the second half of the fortnight it recovered some of its lost ground and managed to climb up, ending the week at 14000+ levels.
Before entering into the crucial week of “Election Results” the Nifty is placed in the middle of the long term trading range between 11000 and 11900. The “Exit Poll” followed by “Final Results” on 23rd May will see the Nifty largely trading in this broad range in the “First week of the Fortnight”.