The stock market is very volatile due to the election. In a day, investors are witnessing more than a 1% move. Recently, home minister Amit Shah gave an interview, and in that interview, he said that stock market corrections cannot be linked with elections. There can be other reasons for a stock market correction. He further said that he is confident that after June 4, the stock market is going to see an all-time high.
Today, the investor proved his statement correct. In this volatility, the Nifty opens with a huge gap as the American market closes in deep green. Bullet ride but cannot sustain the gap up and bear to gear in their hand. There was continuous selling until 11.30 a.m. After that, bulls again tried to uplift the market till 22300, and again, bears came and took the charge.
Again, there was continuous selling until 2070. At 22070, there was S3 pivot support, and Nifty took support at the point. With that support, the charge was raised, and then there was continuous buying. The sellers were completely trapped.
This type of buying shows that investors are bullish and completely confident that Modi 3.0 is confirmed, and it shows that there is no fear among the investors due to the election result. The Nifty’s all-time high is 22,794.70. The way investors are buying, there is a huge possibility that we can witness an all-time high before June 4, which is an election result date.
Read: Amit Shah interview gives confidence to investors
Investors are not leaving any chance to buy the dip whenever there is a dip there is continuous buying from investors. Nifty tried to Breach the level of 22000 two times but always unsuccessful. Whenever there is a closing below 50 days moving average bull dominates and always successful to close above 50 days moving average.
On October 26, 2023, Nifty touched the level of the 200-day moving average. At that time, Nifty was trading at 18950. Since then, Nifty has never touched the level of the 200-day moving average. It continuously moves above the 50-day moving average, and buying happens whenever it touches the 50-day moving average.
This shows that upward Momentum is very strong and bulls are utilising every opportunity to buy the dip. It is happening when the foreign investors are continuously selling. Now domestic investors are driving the market and they are confident about upcoming countries development and economic growth.
Retail investors are also actively investing in mutual funds and buying shares on dips. Retail investors finally understood that, in the long term, Nifty is going to give handsome returns. In the last five years, Nifty has given more than 90% returns and it has amaze the retail investors.
More than 1 crore of Demat opened in financial Q4. More and more people are getting attracted towards the stock market because of IPOs giving handsome returns on listing day and all overall returns Nifty has given.Also, financial literacy is increasing in India and people are getting aware of how to invest money and where to invest money
Read: Top Liquor Stocks in India
Conclusion:
The volatility is very high because of the election. Investors already show that they are confident in Modi 3.0. My advice to all investors and traders is to avoid FNO trading during this period. Volatility increases the risk in F&O. There is a huge chance that new investors and traders can lose during this period. If you are a first-time investor, it is better to wait for the election result, and after that, you can invest. This is just my advice; please don’t buy or sell on my advice. Please consult your financial advisor before doing anything in the stock market.
