Post Election Results Outlook for the day: June 5, 2024
All is not over. I expect the markets to be volatile till a stable coalition government is formed.
Not sure how much market has factored in a coalition government yet. A scenario of follow-up selling is very much possible. I have observed in the past that with news based big moves, a follow up move happens in the first half of the next day and mostly reverses. (Eg, Post budget move of 2021).
22k Puts in Nifty and 47k Puts in Bank Nifty has the highest OI, so this coming in trouble can amplify any further down move.
Will be very interesting to see what FII does today. Exit pollsters, deceived FII. On Monday FII covered most of their shorts and added longs, only to scramble yesterday.
Few institutions or individuals have butchered many in the market in the last two days.
This whole week could be a very tricky week, best would be to do some bullish ratio spreads with defined risk, as we have corrected quite a bit now.