The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,570 level, a premium of nearly 160 points from the Nifty futures’ previous close.
The counting of votes for the Lok Sabha Elections 2024 will begin soon with Prime Minister Narendra Modi projected to retain power for the third consecutive term. The exit polls indicated that the ruling BJP-led alliance is likely to win a vast majority in the lower house of the parliament.
Read Election Results 2024 Live Updates here
On Monday, the domestic equity indices witnessed a sharp rally with the benchmark Nifty 50 closing above 23,200 level, as investors cheered exit polls, along with better-than-expected India Q4 GDP.
The Sensex surged 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 as it logged its best session in over three years.
“The Nifty 50 index ended well above the previous hurdle of 23,100 – 23,000 which hints at a continuation of the uptrend. The actual results will be declared today, and if all goes well then we could see a continuation of the momentum on the higher side. The previous hurdle of 23,100 – 23,000 will be seen as the immediate support now, while on the higher side retracements of previous moves hints at possible targets around 23,700 followed by 24,000 – 24,200,” said Ruchit Jain, Lead Research, 5Paisa.com.
Hence, he advises traders to continue trade in the direction of the primary trend with a positive bias.
Here’s what to expect from Nifty 50 and Bank Nifty on Election Results 2024 day:
According to the Open Interest (OI) data, on the call side, the highest OI is observed at the 23,500 strike price, followed by the 24,000 strike price. On the put side, the highest OI is at the 23,000 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 Prediction
The Nifty 50 started the week at a new record high with a significant gap up and the benchmark ended above 23,300, with gains of over 3%, on June 3.
“The Nifty started the day by breaking out from the previous swing high on the daily chart, driven by the exuberance created following the exit poll. The sentiment remains highly dependent on the election results tomorrow. If the election results align with the exit poll or fall below the exit poll numbers, it might attract mild to heavy selling pressure in the overall market, including the Nifty space,” said Rupak De, Senior Technical Analyst, LKP Securities.
However, if the results are better than expected, meaning if the NDA secures significantly more seats than the average exit poll numbers, then he believes the Nifty might embrace another round of buoyant movement.
Given the current market fluctuations, V.L.A. Ambala, Co-founder – Stock Market Today (SMT) recommends traders and investors adopt a neutral strategy for the next 1-5 days if they wish to target a wider range. Individuals with a low risk-taking capacity are advised to hedge their positions or avoid participating in the current market conditions.
Based on these momentums, she expects the Nifty to find key support between 23,240 and 23,000 levels in the next trading session, and face resistance between 23,450 and 23,610.
Bank Nifty Prediction
The Bank Nifty outperformed the Nifty 50 and surged 4.07%, or 1,996 points, to close at 50,980 on Monday.
“Bank Nifty broke through all resistance levels, indicating a strong bullish sentiment driven by the exit poll results. However, it’s advisable to observe the market for the next 2-3 sessions before making any conclusions about adopting a buy-on-dip strategy,” De said.
According to Ambala, the Nifty Bank index could gain some support at 50,800 and 50,000, and record resistance at 51,500 and 52,100 levels.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
You are on Mint! India’s #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!
Download The Mint News App to get Daily Market Updates.
Published: 04 Jun 2024, 07:22 AM IST
