Stock Market Focus On Lok Sabha Election 2014
The Election commission has announced on 5th March that the 16th general elections in India will be conducted in 9 phases from April 7th to May 12th and the election result will be declared on 16th of May. Most of the media predicted that their opinion poll says UPA will concede a huge defeat and NDA will get around 230 seats. But to get the majority they need 272 seats. The NDA under the leadership of Narendra Modi will get more seat than all the parties. It is believed that some more parties will join NDA after the election results has been declared.
Why Markets On Volatile For Elections?
Not only in this election, after each election the stock market tends to be volatile because on the basis of the policies and trends that is suggested by the ruling party the investors will buy or sell their stocks in a huge volume so the markets tends to be volatile. Most of the investors and FII wish Narendra Modi should become the prime minister. In India’s top 100 companies nearly 73% of the CEO’s wish their support to Narendra Modi. Now the stock market has picked up and within 10 days the NIFTY has reached to 6550 from 6200 and reached a record high. Still, there are chances that NIFTY may rise up further. New opinion polls and election policies will make the market to be in volatile and small investors should trade using stop loss which will be a good one for them.
Market Opinion And Forecast For Elections:
According to us the stock market will still rise up and NIFTY will reach further 500 points up before the elections and this is supported and recommended by many technical. Before the election counting the NIFTY may move up to 6980, 7130. Mainly FII’s are buying equity, Nifty future and stock future in a large volume. Due to this there is a chance that there will be a short covering in an index and stock future and because of this the NIFTY may rise to 7000 and if the election results favor BJP then the NIFTY may achieve the target by 7640. If there is a hanging parliament then NIFTY will shed 1000 points down and will trade near 5550. Fundamentally now the NIFTY is too high, but it’s technically moving up and after the election, we believe strong fundamental will build up.
How To Trade At Election Time?
This is the right time for the investors buying the equities. An investor can spend 50% of his investment money to buy the equities now. The investors need to follow the recommends carefully and have to buy the recommended stocks. Investors need to be very careful in future and options. Now premium will be higher in future and options. This is the right time for the option traders to buy. The premium will be very high on reaching the Election Day. Option traders can go for a call option or put option with option strike. Please follow our Facebook posts and avoid going short in future and options because the market volatility will be more.
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In a few months we will be providing free recommends through Facebook to all. If you watch our old Facebook recommends, you will be able know our recommends are best in the market. Please check our old Facebook posts in which you can learn a lot. Always follow our Facebook post and our id is “Forex Shares Option Tamilnadu”. Also, we will be posting some important news in our posts so from now onward’s your trading will be successful if you follow our Facebook posts.