- 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.
- 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.