Many traders are asking How will market react to AAP win.
If we have to take any cues from History in 2013 when BJP won the 3 state election and Hung Assembly in Delhi and formed short term top@ 6415 on 9 Dec 2013 and than corrected till 5933. Classic case of Buy Rumor Sell News
In Current Scenario Market was already feeling nervous before election and has corrected 6 trading session in row so much of it is factored in, Hence it become case of Sell Rumor Buy News after initial Knee jerk reaction which might come on Monday or Tuesday.
Also from Reforms and Fundamental perceptive Delhi election will not make any changes in Lok Sabha or Rajya Sabha. It will be Business as Usual, Loss will more like a prestige issue to BJP.
So going by historical data we might form a short term bottom in next few days and than rally towards new high. Also I feel Delhi will again throw a Hung Assembly ( I have all right of being wrong 🙂 ) as last time for 16 seats the difference between win and loss was less than 1000 votes.
Use my Analysis as an Input to your trading and trade on levels not views.
The market makes it own moves, such an expectancy is already factored in, in the sense that BJP will not do well. If that is so, then I feel in this week the short term bottom must be in place.
In addition to already foregone result of Delhi in favour of AAP, Tatasteel result announced after trading hours on Friday, will have bearing on our Market.
If AAP shall have clear mandate,then it would be surprise….cause Sustaining true leadership is a lot more challenging than we give it credit for,and their past ruling experience is miserable.
As a party there shall be a lot of scrutiny and, even when if AAP shall have success, it shall become about sustaining that success. It shall be peakless mountain balancing.
To be honest, AAP is providing an alternative to Congress. We have Bihar elections this year together with the UP elections and Punjab in 2017. AAP’s win(if that be there) will kill BJP’s Rajya Sabha dreams. I feel this is definitely going to happen…
market need to test 8540 future which is 48d ema lvl,most important level is 8250-8300 future lvl which is trend line support .
The greece drama goes on which will weigh on international markets n hence indirectly on ours too
Hi,
Delhi election is result is only one of the reasons affecting price movement. Whatever may be the result, it will be reflected in the price movement automatically along with other reasons. The weightage of this reason of election result and its time period is more important.
As per disciplinary rules, one has to stick to technical levels whatever may be the results and take trades accordingly because price will reflect each and every thing perfectly.
Let us see and learn how market react this event.