Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Stocks

Week Ahead: Markets’ Reaction to Exit Poll and General Election Results

by June 3, 2024
June 3, 2024

The Indian equities experienced a notably eventful previous week, marked by a fresh lifetime high and a subsequent decline of over 400 points within the same week. Over the past five sessions, the Nifty 50 index fluctuated within a 693.80-point range before closing with a net weekly loss of 426.40 points (-1.86%).

As the markets open on Monday, they are expected to react positively to the exit polls indicating the BJP securing 350-370 seats, suggesting that the current government will retain power for a third term. On Tuesday, the markets will continue responding to the election results. These events are anticipated to induce heightened volatility and wider market swings than usual. Given the potential for market gaps and increased volatility, we are issuing this note in place of our regular weekly outlook.

In light of these significant external events, focusing solely on resistance and support levels may be less relevant, as markets often defy these levels during such times. Instead, it is more useful to consider the potential range of market movements.

Examining the Options Data for Nifty’s 06JUN expiry reveals maximum Call OI built-up at the 23000 and 23500 levels, with significant Put OI at the 21900-22000 levels. This suggests that, in a worst-case scenario, Nifty’s upside potential could reach 23000 or 23200 levels, while downside support may be found at 21800-22000 levels.

It is crucial to understand that Options Data is neither a leading nor lagging indicator. It is coincident data that reflects the current market situation and is subject to change. This data provides situational awareness and helps in forming a broader market perspective.

Given the strong positive reaction to the exit polls and subsequent election results, the best approach is to vigilantly protect profits at higher levels, as the markets may still experience some profit-taking after a day or two of strong positive reactions. Fresh aggressive buying should be considered if Nifty convincingly moves past its previous high. Until then, it is prudent to stay invested in stocks demonstrating strong relative strength while vigilantly protecting profits at higher levels.

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

previous post
One MAJOR Concern About Friday’s Rally
next post
Trump joins TikTok, the app he once tried to ban as president

Related Posts

DP Trading Room: Shake Up at Boeing (BA)

March 25, 2024

Return of the Meme Stock Frenzy: Is Now...

March 28, 2024

These Sectors are Poised to Lead in Q2

April 4, 2024

Will XRT (Retail) Sink or Soar? Here’s What...

August 16, 2024

Key Breadth Indicator Flashes Buy Signal for Nasdaq...

May 3, 2024

Stock Market Today: Are Big Tech Growth Stocks...

September 11, 2024

Stock Market Pushes Higher, But Is There a...

June 13, 2024

Market Research and Analysis – Part 5: Drawdown...

April 11, 2024

Stock Market Indexes Plunge After Hitting Resistance —...

April 12, 2024

Decoding 10-Year Treasury Yields: A Monthly/Secular Perspective Overview

February 22, 2024

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Latest News

    • ‘Bait and switch’: Schumer warns of bitter funding fight over GOP cuts plan

      July 8, 2025
    • New book exposes Jill Biden’s power grab amid husband’s political demise

      July 8, 2025
    • DeSantis not keen on Musk’s new political party, has another idea for disrupting DC

      July 8, 2025
    • US will ‘have to’ send weapons to Ukraine, Trump says days after Pentagon pause

      July 8, 2025
    • Key advisor called Hunter Biden’s role on strategy call ‘inappropriate’ after he overruled legal guidance

      July 8, 2025
    • Former Biden doctor asks to delay testimony to House committee investigating mental fitness

      July 8, 2025

    Categories

    • Business (1,296)
    • Politics (6,304)
    • Stocks (904)
    • World News (460)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved