We hope you were able to catch the recent rally, which was per-election euphoria. So what should we expect next!
Take a look below charts:
- Watch what happens to market after every major low in McClellan Summation Index, Can you spot a pattern?
- Nifty is at all time high, however market needs time to digest recent move and we expect market to be range bound until election results are out.
Market does not like uncertainty, and in this case the magnitude of uncertainty is HUGE, why?
Good Luck!
- If existing government cannot retain full majority then coalition government will come in power, in short benefits come with strings attached and such a government is not robust and strong. Market may take a dip initially followed by decent rally or euphoric rally of a week followed by sell the news event. In short, a bit of confusion and direction less.
- If existing government loses then it means change in government which in turn means change in policy & direction, unfortunately opposition government does not have a good leader and this scenario might be the worst for the market.
- If existing government retains full majority then market will continue with the next rally and you need to be ready for this scenario as you don't want to miss the train.
Good Luck!