After months and days of speculation, the D-Day is approaching next Friday and let us look at what could be the various scenarios at play here. The rally before the Results does put question mark over the post 16th May scenario.
1. If Modi wins we rally another 5-10 pc. That would be the time to definitely book profits.If you look at 2009, a top was made in next 2 days after the results and then about a 10 pc correction set in. Next 4-5 months, we moved around 4500 which was hit 2 days after the results.
2. If there is uncertainty in forming the Government and if a compromise candidate within the BJP has to be found out then the markets would correct a bit. If there is a hung Parliament, then expect a 15 pc quick correction to take us to 6000-6300 levels.
3. The markets have begun a fresh leg of rally. The first major leg was 5118 to 6340, a rally of 1222 points. This leg began at 5933 giving targets of 7155 or 7910. Now, the tricky part is that if we reach 7155 or there about before the results what next?
4. It could very well happen that the next week may have a significant top in place.
5. As per Elliot, we are on the cusp of 3rd of 3rd wave which is the most powerful wave and will have several strong gap ups in place.
I would post an update on Thursday and Friday based on the prevailing trend which would give us an idea what to expect post the election results.
1. If Modi wins we rally another 5-10 pc. That would be the time to definitely book profits.If you look at 2009, a top was made in next 2 days after the results and then about a 10 pc correction set in. Next 4-5 months, we moved around 4500 which was hit 2 days after the results.
2. If there is uncertainty in forming the Government and if a compromise candidate within the BJP has to be found out then the markets would correct a bit. If there is a hung Parliament, then expect a 15 pc quick correction to take us to 6000-6300 levels.
3. The markets have begun a fresh leg of rally. The first major leg was 5118 to 6340, a rally of 1222 points. This leg began at 5933 giving targets of 7155 or 7910. Now, the tricky part is that if we reach 7155 or there about before the results what next?
4. It could very well happen that the next week may have a significant top in place.
5. As per Elliot, we are on the cusp of 3rd of 3rd wave which is the most powerful wave and will have several strong gap ups in place.
I would post an update on Thursday and Friday based on the prevailing trend which would give us an idea what to expect post the election results.
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