Election Results Out, What Further On

Finally election results are out and UPA Govt has won the Election and the hopes of a Stable Govt and also without the Communist support have driven the Sensex to above 14.2K with the first ever circuit breaker in its history, but shall it be able to remain aloof of the Global Markets and start a rally of its own, well I don’t feel so and have an opinion that 2004 is going to be replicated wherein we saw Sensex breaking down with a Circuit Breaker and creating its low not to be seen until now as we followed global trend and forgot everything else, so that might be the case just now too, we might just have a top in place after all the initial Euphoria regarding Stable Govt calms which might be as early as tomorrow, 14.3 – 14.4K, might be the first place to enter shorts with a stop of hardly 50 – 70 points, if triggered 14.6 – 14.7 K might be the next level to go short with a stop of again 50 – 70 points. If 14.8 K to breaks then well it might be a start of a new bull market, well but I believe that no new bull market is on cards and we might close the year at 10K or maybe even 6K cud be seen this year only with 11K coming by June itself. So I wud suggest to buy Nifty Puts of Dec 2009 Expiry and strike Price of 3600 or 4300 as long term trading strategy. Coming to short term strategy Nifty might test 3900 by this expiry so 4100 put option close to 60 might be a short term buy. Happy Trading