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

SCTR Report: Unlocking TSLA’s Potential—What Every Investor Needs...

October 24, 2024

How To Profit From Bullish Gap-Down Reversals

March 16, 2024

Why This S&P Support Level is SO IMPORTANT

October 8, 2024

Could U.S. Stocks Crash In October?

September 27, 2024

New Dow Theory CONFIRMS BULL Phase!

February 29, 2024

Analyzing Alphabet’s Surge — Here’s How to Get...

April 26, 2024

2 Consolidating Stocks Ready To Resume Their Uptrends

April 8, 2024

Traders are Eyeing These Metals After China’s Big...

October 1, 2024

Investors Await CPI and Bank Earnings: Will They...

January 15, 2025

Spot The Warning Signs of Bankruptcy!

March 15, 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

    • State Department says 59,000 tons of food assistance are in motion after reports of incinerated aid

      July 18, 2025
    • Pentagon to probe Microsoft’s use of Chinese engineers on sensitive defense systems, Hegseth says

      July 18, 2025
    • GOP senator reveals the ‘dirty’ secret to Trump’s Make America Healthy Again movement

      July 18, 2025
    • Russia says NATO threatens WWIII in latest deterrence plan that could take down Kaliningrad ‘faster than ever’

      July 18, 2025
    • Pro-Israel congressman accuses Tel Aviv of ‘mocking’ Trump with ‘suicidal’ strikes in Syria

      July 18, 2025
    • House Republicans face mounting resistance as third ex-Biden WH aide pleads Fifth Amendment

      July 18, 2025

    Categories

    • Business (1,310)
    • Politics (6,459)
    • 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