OThe Indian stock market indices, Sensex and Nifty 50, are poised for a robust opening on Tuesday as the nation awaits the announcement of Lok Sabha Election 2024 results. With Prime Minister Narendra Modi projected to secure a third consecutive term, investors anticipate a favorable outcome for the ruling BJP-led alliance.
The Gift Nifty, an indicator of early market trends, suggests a positive start for the Indian benchmark index, trading around the 23,570 level, reflecting a premium of nearly 160 points from the Nifty futures’ previous close.
Monday witnessed a sharp rally in domestic equity indices, with the benchmark Nifty 50 closing above the 23,200 level. This surge followed positive sentiment from exit polls, coupled with better-than-expected India Q4 GDP figures.
The Sensex soared 2,507.47 points, or 3.39%, to close at 76,468.78, while the Nifty 50 settled 733.20 points, or 3.25%, higher at 23,263.90. Nifty 50 formed a hammer-like pattern, marking its best session in over three years, indicating a continuation of the uptrend.
Ruchit Jain, Lead Research at 5Paisa.com, predicts further momentum in the market if the election results align with expectations. He identifies the previous hurdle of 23,100 – 23,000 as immediate support, with possible targets around 23,700 followed by 24,000 – 24,200.
Mandar Bhojane, Research Analyst at Choice Broking, notes that on the call side, the highest Open Interest (OI) is observed at the 23,500 strike price, while on the put side, the highest OI is at the 23,000 strike price.
Rupak De, Senior Technical Analyst at LKP Securities, highlights the Nifty’s dependency on election results. A deviation from exit poll projections may induce market volatility. V.L.A. Ambala, Co-founder of Stock Market Today (SMT), advises adopting a neutral strategy given current fluctuations.
Ambala expects Nifty to find key support between 23,240 and 23,000 levels, with resistance at 23,450 and 23,610. Meanwhile, the Bank Nifty surged 4.07%, closing at 50,980, outperforming the Nifty 50. Ambala anticipates support at 50,800 and 50,000, with resistance at 51,500 and 52,100 levels.
While bullish sentiment prevails, analysts advise caution and observation before adopting buy-on-dip strategies. As the market awaits election results, investors remain vigilant, ready to navigate potential market fluctuations with strategic positioning and risk management.