Published on: June 3, 2024
Congratulations to all investors and traders as the markets soar to an all-time high.
The Nifty and the Sensex have soared to all-time highs, with the Nifty hitting 23,338 and the Sensex reaching 76,738. This remarkable surge, which came as a gap-up following Exit Polls signalling a third term for the Modi government, has left many traders and investors grappling with the fear of missing out (FOMO).
The gap-up has caught many off guard, especially those who held back from buying due to negative market sentiments last week. The rapid rise has sparked a sense of urgency among investors who fear they might miss further gains if they don’t act quickly.
If you are reading our blog regularly, we have posted the Fractal of Nifty price action now compared to 2017. Read here
What’s Next?
As a trader, you will be keen to know What’s Next for the markets, right?
We analysed Nifty charts based on P&F and the candlestick charting method.
Nifty P&F Chart

On the Point and Figure chart, the index has demonstrated a follow-up breakout from a 45-degree angle with the Anchor Column Follow Through, indicating that the bulls are firmly in control. However, this bullish pattern will be negated if the index closes below 22,450.
Nifty Candlestick Chart

The candlestick chart shows that the index has broken out of a Rising Channel, another bullish indicator. Nonetheless, traders should exercise caution as the current candlestick pattern shows a Hanging Man, a potential signal of reversal. A break above 23,350 will invalidate the Hanging Man pattern and suggest continued bullish momentum. Conversely, a drop below 23,000 could indicate that a short-term top is in place.
Market Sentiment and Volatility
While today’s surge was primarily driven by exit poll results, it is essential to note that markets may remain volatile as the actual counting of votes occurs tomorrow. This could lead to fluctuations and sudden market movements, making it crucial for traders to stay alert.
For those experiencing FOMO, it is important to approach the market with a well-thought-out strategy rather than reacting impulsively. Here are a few tips:
1. Stay Informed: Follow news and updates on the election results and market reactions.
2. Your System is Your Existence: In this scenario, paying close attention to the system levels and following them is a good idea.
3. Risk Management: Ensure you have stop-loss orders to protect against sudden market volatility.
4. Patience: Remember that markets can be unpredictable. Sometimes, waiting for the right opportunity can be more beneficial than jumping in too quickly.
Have a Great Day, Tomorrow!