Indian voters are matured than politicians have expected and have given more seats than UPA had expected. we will be having more stable govt which has minimum black mailers.we can have reforms implemented easily.
markets were moving in a band of 11621-12272 since last 10 days with -ve divergence.
looking at euphoric sentiment post results we can have a gap up opening
which can be as high as 5%.
break out from barrier of 12272 can take us upto 12857 (38.2% of fall from 21206 to 7697) after crossing 12568(61.8% of fall from 15580 to 7697).more over crossing of 12568 will open the gates for 14500/16000 (50 and 61.8 % of fall from 21206 to 7697) in coming days.
if a big gap up opening is seen , we shd utilise to sell and book profits. we have seen no of gaps so far and this can be an exahustion gap and we can see trend reversal.buying at this lvl will not be favourable in short term.
200 day moving averages will now become good support areas to invest.
Pankaj Shah
