EXIT POLE projections are out and that has veen in line with what market was expecting.
markets expectations for NDA was between 370-400 and EXIT POLES on an average have given the projections of 361 in favor of NDA.
so on 4th,june if NDA scores around 360 then that would satisfy markets as far as expectations are conserned.
Anything under 350 would be slightly negative for MARKETS.
Lets see, as of now its only projections so the EVENT risk still would continue to persist atleast till Tuesday afternoon.
If in case NDA gets above 400 then that would be a positive surprise for markets.
for markets during the course of next 2 days more then its technical setup direction would entirely depend on how much more can NDA get above that 350 mark.
atleast till Wednesday afternoon or till Thursday morning election results shall dominate market trends,
but post thursday morning markets would move forward from elections and markets should get bac to basics.
Anyways at the end of the day markets moves on corporate earnings.
Yes political equations does matter to some extent but above everything else for long term its always earnings which drives STOCKS higher or lower.
If you dig in further then earnings too moves in CYCLES just like everything else in this world.
before i come to NIFTY levels would like to make one final point here
for the first time in indias history we have seen top government officials openly and publicly commenting on markets reaction on election results day.
Since elections started on 19th,APRIL we have seen PRIME MINISTER, FINANCE MINISTER and even HOME MINISTER in their several interviews reluctantly saying that MARKET would break all records on 4th,june,
SO there must have been some arrangements done for that we dont know what exactly they have planned but it would be intresting to see how top officials intent to manage markets.
Next 48,hours shall be intresting and exciting.
Anyways lets move on and discuss critical levels to track on NIFTY
Last week we discussed 2 support levels for NIFTY
1,was 22908 on closing basis and 2,was 22786 on spot which was a pattern support.
During the week we saw NIFTY breaking both its supports and turn lower towards its pattern objective of 22575,
Our next downside objective was 22355 but it dint went there and because I have said in last weeks post itself that whatever trades you have look to exit them on 31st,MAY,
Obviously you cannot go in an EVENT with one sided unhedged trades,
and for investors i also advocated to hedge portfolios with SEPTEMBER puts.
If you have done that then carry on with those puts,
because those puts would make a lot of sense once this election dust settles down.
For next week levels are unlikely to make sense till Wednesday but still on upside 22850 is going to be a key pivot,
above 22850 we would be looking for further higher highs closer towards 23400-23,600.
Lets see how markets open tomorrow.
gann,insides 