Lok Sabha Election Results 2024: Will Nifty 50 break its record today if Narendra Modi-led NDA retains power?
Also Read: Nifty to reach 24,500 by the end of this year: BofA SecuritiesWe gathered expert opinions on how they expect the Nifty 50 to move on election result day. Will Nifty 50 break Monday's record or remain in a range? Here's what they said:Chouhan believes that as long as the Nifty 50 trades above 23,000, the bullish momentum will likely continue."On the higher side, the index may rise to 23,500 or even 23,800 levels.
On the other hand, below 23,000, the index might correct back to 22,800 levels. The strategy should be to take partial profit on long positions around 23,800 levels," said Chouhan."The strategy for Tuesday should be to create 'Bull Call Spread'.
For that, buy 23,000 call options (6th June 2024) at 200, with a target of 500 and sell 23,800 call options at 60. The maximum loss would be 140 points.
The risk-reward ratio would be 1:3," said Chouhan.Also Read: Lok Sabha election result tomorrow: A look back at stock market performance on last 4 vote counting daysSheth believes that the Nifty 50 has the potential to touch 23,500 as the counting starts on Tuesday, June 4. However, he said traders must use this as an opportunity to book profits in their long positions and wait for the dips in Nifty around 23,000 to 22,800 levels to create fresh long positions.
The medium-term target in Nifty is around 24,500."If the actual results of the Lok Sabha elections mirror the forecast of Saturday’s Exit Polls, we may see this euphoria sustaining. At the same time, we may see the euphoria gradually dying after the results are declared, as the phenomenon of 'buy on rumours, sell on news' may come into play," said Sheth.Also Read: Exit poll 2024 frenzy could be followed by profit booking after results, focus to shift on
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