Most polls predict the Bharatiya Janata Party (BJP)-led alliance will win between 350 and 400 seats in the 543-seat parliament, well above the 272 needed for a majority. The alliance won 352 seats in 2019. The vote counting will happen on Tuesday.
“The markets are likely to start the week positively, thanks to exit polls suggesting a stable government at the center. We maintain our optimistic outlook and expect the Nifty 50 to reach our target of 23,400 in the coming weeks, supported by strong global cues, with key support at 22,400,” said Dharmesh Shah, Vice President of ICICI Securities.
Stock markets broke their five-day losing streak on Friday, driven by value investing and the anticipation of exit poll results released on June 1.
The 30-share BSE Sensex rose by 75.71 points, or 0.10%, to 73,961.31. The Nifty 50 increased by 42.05 points, or 0.19%, to 22,530.70.
In the five days leading up to Thursday, the Nifty 50 and Sensex fell more than 2% due to volatility ahead of the Lok Sabha polls.
The next significant trigger will be the RBI’s Monetary Policy outcome on June 7, following the election results. Experts suggest keeping an eye on foreign investors’ reactions post-election and global economic data from China and the USA, which will influence market sentiment.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
The index started the week positively, hitting a new all-time high. However, profit booking pulled Nifty 50 back to around 22,500, forming a bear candle for the week due to anxiety before the election results.
With a strong technical setup and exit polls favoring a stable government, the market is expected to start the week on a positive note. Volatility is likely to decrease post-election. Shah reiterates a positive outlook, expecting Nifty 50 to reach 23,400 in the coming weeks, supported by strong global cues. Key support remains at 22,400, making any dip an opportunity for buying. Banking, PSUs, Capital Goods & Infrastructure, Defense, Power, and Telecom sectors will be in focus.
Since the start of 2024, Nifty 50 has not corrected more than 5% despite negative news, forming a strong base at 21,800. For the upcoming week, key support is at 22,400, based on several technical indicators.
For Bank Nifty, the target is 51,000 in the coming weeks, with strong support at 48,000.
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