The much awaited “General Election” outcome is finally here and the BJP (303 seats) lead NDA (350+ seats) has finally got the clear mandate to rule and build up “New India” for next five years, till 2024. The favourable outcome for the incumbent government was some what discounted by the markets on very first day of trading, of last fortnight. The Index opened with an upside gap of 250+ points and ended the day with whopping 400+ points gains at 11828. On the day of Final results, we saw huge volatility, as the Nifty traded in 400+ points range between 12041 and 11614. Since the General Election results are finally out, after initial volatility, Nifty has once again resumed its uptrend and ended at new all time high close at 11922.
In our last fortnightly report, we had mentioned that 11900-12100 range is crucial resistance for Nifty and a decisive breakout above 12100 will see Nifty adding couple of hundred points on the upside before any profit taking comes.
Currently, Nifty is facing resistance from the “Supply line” of “Up sloping Trend Channel” and finding resistance from the 138.2% extension level (@11919) of Index’s rally from 10004 lows (26th Oct 2018) to 10985 highs (20th Dec 2018). A decisive breakout above the 12150-12200 zone will not only take the index beyond the “Supply line“ of the trend channel but will also take it past 161.8% (@ 12172) Extension levels. This breakout will clear way for Nifty rallying towards 12500+ levels in weeks ahead.