Election Euphoria Drives Nifty
India’s benchmark Nifty witnessed an extended bull run fueled by the euphoria of the upcoming Lok Sabha elections. The market is expecting that BJP will get full majority riding on Prime Minister Narendra Modi’s massive image boost after the recent air strikes on Pakistan. The index opened 45 points gap up today and climbed till 11350 approx. Major buying was witnessed in Call options as Nifty traded above the upside target of 11268 approx. Going forward, the buying spree is likely to continue if Nifty takes the support of tomorrow’s range low. The nearest upside target for the index is around 11381 approx.
How Far Will Nifty Rise?
Nifty continued its upside rally powered by expectations that the BJP Government is likely to be voted to power again. The index has closed confidently above 11300 today and is likely to take support around tomorrow’s rage low. Call options witnessed strong buying intraday. The 11400 and 11500 call options gained 75% and 100% respectively. There is a possibility of a correction tomorrow as Call option gamma has expanded exponentially again. Going forward, Nifty is likely to find support around tomorrow’s range low. The nearest upside target for the index is around 11381 approx. On the other hand, if Nifty trades below tomorrows range low, it might scale down to 11181 approx.
In the hourly session, Spot Nifty has closed around 11300 approx. The index is likely to find support around tomorrow’s hourly range low. The nearest upside target for Nifty is around 11360 approx. On the other hand, if Nifty trades below tomorrow’s hourly range low, it might scale down to 11164 approx.
Bank Nifty Options Data