As we all know, the Saturday exit poll came in favor of the BJP-NDA. The Hon. PM Narendra Modi will be the PM of India one more time. Will it impact Sensex, Nifty 50, Bank Nifty, or the Indian stock market?
According
to the exit polls, BJP-NDA is expected to win the elections, and this may have
a good effect on the Indian stock market on Monday. This is because investors
usually like when there is political stability, which can make them feel more
confident about the market. We may see an increase in the Sensex, Nifty 50, and
Bank Nifty, and more people buying stocks in different areas. But, the final
results of the election and how people feel about the market will determine how
much the market goes up.
As the
government is not going to change, how far the market, or Nifty, or Bank Nifty,
goes up is the question mark.
Expected Gap Up Tomorrow, but how many points will Gap Up sustain till June
4th on counting day?
In that
case, price action will play a crucial role, and investors or traders need to
follow price action.
Without any knowledge or advice,
do not blindly take a call or buy shares unless the price action or market
trend shows an uptrend is sustained.
Nifty
50 -The level of 22,775 is expected to be significant
for tomorrow's market. This is because the Dow Jones index closed in a positive
manner on Friday, and the impact of the exit polls may lead to a gap up opening
in the market tomorrow.
On Friday, the Nifty closed at 22,530. If it opens above 22,775 on Monday
and sustains that level, it will be interesting to see if it can reach 22,965
or even 23,110.
If the gap-up opening at 22,775 is unable to sustain, there is a
possibility of a downward movement in the market. In such a scenario, it is
important to closely monitor the price action to measure the market sentiment
and make informed decisions.
As per the price action, it may be a false breakout. If Nifty goes below
22,480, there might be more downside possible. If, after a gap up, the market
touches 22,775, there could be a chance it might decline, as indicated by the
15-minute chart, since it previously declined from this level.
The
market may not go up unless a price action pattern significantly affects the
Open Interest data. Only when such a pattern appears is there a chance for the
market to rise.
Bank
Nifty – On Friday, the Bank Nifty experienced a range-bound scenario, closing
at 48,967. It is important to observe tomorrow's market opening to see if the
Bank Nifty opens with a gap-up. Tomorrow, it is crucial to monitor the
resistance levels at 49,500 and the psychological level of 50,000, as these
levels will play a significant role in determining the market's direction and
could act as barriers to further upward movement. This is particularly
important because the market previously dropped from 49,688.
If the market opens flat at 49,079, there may be a chance of short covering, which could result in a 500-point movement. If market goes up 49079 and sustain then there may be chancers short trader may be trapped.
Note : Don't trade blindly just because the Exit Poll predicts a clear victory for BJP. It's important to analyse price action and trends carefully and trade accordingly.
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