Bruised , Battered but still stood Tall

9th November , day of major political drama where Donald Trump was elected as President over Hilary Clinton taken to be totally surprising as polls indicated a clear Clinton win along with the pain coming from another big move by the Indian Prime Minister to curb black money.
Nifty futures indicated healthy cuts during pre-open as globally all the indices were down about 3-5% on the news that Trump was leading the electoral race.
On opening, cuts deepened enough to make the index nearly touch its 200 DMA. Early trading hrs were extremely volatile as the see saw-ing vote counts gave edges to both bulls and bears with the index covering 50% of its losses when the count showed Clinton ahead.
The short covering was led by value buying through DIIs and some bullish positions created by brave traders. Going ahead, picture was getting clearer about Trump winning which in turn impacted IT stocks and gave Pharma and Banking sectors a bit of relief thus averaging out the cuts allowing the index to keep its retraced position from the lows it made during the early hrs of trading.
Through the respective speeches by the candidates about their policies it was clear that a Trump win would benefit Pharma and pressure IT and with Clinton vice versa.
As the election counting headed for the last stage, it showed Trump winning not only the presidential post but Republicans clean sweeping the House and the Senate. Pharma led relief rally gained momentum with European markets opening with lesser cuts than what the futures were indicating earlier. Cuts lessened to 1/3rd from half with majority of index heavy weights along with bank names going into the positive due to incremental buying and short covering where the index finally closed.
In short, the early hiccup with a damaging downturn was converted into a mere 100 point cut during close but index failed to touch 8500 when it was trading in its highs closing below 8450 which can be perceived only as value investing and covering of short positions initiated at higher levels not a trend reversal as uncertainty still looms about how American markets will react later in the night.

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