Nifty 10333(+81) BankNifty 25440(+272)
Nifty futures open interest went down by -5.7% indicating wind of almost entire short position that was created in the last two weeks. Fresh position would be created after Election results, that may indicate the next set of trends in Nifty. Technically, Nifty(spot) may remain strong if holds above 10300 with resistance at 10390 and 10430.
OI in BankNifty got reduced by -16.7% which indicates short covering. Technically, BankNifty(spot) if breaks and holds above 25450, then it can move towards 25620 and 25700 levels.
How market may react after tomorrow's election results:
Markets reacted positively to Exit polls that unanimously predicted a win for the ruling BJP, now the focus would be shifted to Monday(Dec 18th) morning when the actual results would be known. Most of the TV channels had projected BJP to win in 105-115 seats, lets see how the market may react to different scenario's.
Scenario 1: If BJP wins as per Exit polls 105-115 seats: Markets may initially react positive but towards closing may settle flat or with marginal gains, as it had already gained on Friday’s session.
Scenario 2: If BJP wins more than 125-130 seats: Markets would react positively and carry on the momentum for few more days may even break all time high of 10490 in Nifty.
Scenario 3: If BJP wins less than 100 seats: Market may react negatively as hype created will fizzle out but the fall will not be big as BJP will retain power with less seats.
Scenario 4: If BJP lost the election and unable to form government: This would be the worst case scenario, where market can fall heavily and Nifty may break below 10,000 levels.
Nifty futures open interest went down by -5.7% indicating wind of almost entire short position that was created in the last two weeks. Fresh position would be created after Election results, that may indicate the next set of trends in Nifty. Technically, Nifty(spot) may remain strong if holds above 10300 with resistance at 10390 and 10430.
OI in BankNifty got reduced by -16.7% which indicates short covering. Technically, BankNifty(spot) if breaks and holds above 25450, then it can move towards 25620 and 25700 levels.
How market may react after tomorrow's election results:
Markets reacted positively to Exit polls that unanimously predicted a win for the ruling BJP, now the focus would be shifted to Monday(Dec 18th) morning when the actual results would be known. Most of the TV channels had projected BJP to win in 105-115 seats, lets see how the market may react to different scenario's.
Scenario 1: If BJP wins as per Exit polls 105-115 seats: Markets may initially react positive but towards closing may settle flat or with marginal gains, as it had already gained on Friday’s session.
Scenario 2: If BJP wins more than 125-130 seats: Markets would react positively and carry on the momentum for few more days may even break all time high of 10490 in Nifty.
Scenario 3: If BJP wins less than 100 seats: Market may react negatively as hype created will fizzle out but the fall will not be big as BJP will retain power with less seats.
Scenario 4: If BJP lost the election and unable to form government: This would be the worst case scenario, where market can fall heavily and Nifty may break below 10,000 levels.