Markets participants are clearly waiting for the results of the 17th Lok Sabha elections. The counting of votes will be conducted on 23 May 2019, and on the same day the results will be declared.
Every time Nifty reaches the All-time high it keeps every other trader on the edge of the seat. Most of the bears are nervously watching the all-time reference. Despite expectation from the market participants clearly, there are no aggressive price movements breaking either side so far.
Bullish Participants yelling for 12500 and the Bearish Participants yelling for 9000 levels. There been such kind of noise in the past as well.
If you are short term trader out there one should start ignoring the noise as those levels are mostly driven out of the intuition based on their political view. Markets not necessarily have to get aligned with a political view all the time. The better examples are Mr. Donald Trump won US presidential election results, Demonetization in India, Br-Exit event in Britain and most of the state election results in the past. Despite all such political events market does what is want to do.
However one should still have an eye on the results day of Indian Elections as it brings high volatile price action movements as more eyeballs are watching the Indian Election 2019 result numbers ranging from short term traders to long term investors.
As a Short term trader or Intraday Trader one have to follow the checklist simply to ignore the external noise
1)Understand what is driving this market? (Global Sentiments/Local Sentiments)
2)How the other traders are positioned in the market
3)Is the Short term inventory long to too long or Short to too Short?
4)If there is any breakout is it really strong?
5)If the breakout is weaker then how to handle the situation?
6)How is the volume behavior from an intraday perspective?
7)How the long-term auction and intermediate auctions are positioned.
8)How the value area and point of control is developing for the day
9)Is the market building a stronger structure or weaker structure?
10)What is the overall market confidence for the day?
Asking the above questions to yourself on day to day basis one can avoid most of the unwanted bias and keeps traders emotional levels in check and mostly that makes traders take control of their own trading decisions with better and reasonable anticipation in the market thereby not deviating away from the trading process.