The third and the biggest phase of polling is done and we had good polling of 67.41% vs 2014 figure of 67.28% which means we have matched the Modi wave polling and all those who are saying that the polling is less and voters are unenthusiastic need to re-look at their words again. Practically 303 out of 543 seats have polled and the market now knows who is winning and who is not. So, let’s see where it goes from today. US markets closed positive with Dow Jones gaining 140 points but Asian markets are sulking a bit today in flat to negative territory. Hong Kong is down 50 points and Japan is absolutely flat.
Coming to domestics, the polling is over and the higher voter turnout this time indicates that Modi is in the driver’s seat and the higher voter turnout was seen across all states like UP, Kerala, West Bengal etc. Now the focus shifts to a 4th phase which will go to polls on 29th. Another news is the AAP-Congress alliance in Delhi and Haryana did not happen as yesterday was the last day of polls. This also might work in favour of BJP. Lastly, the SC notice to Rahul Gandhi on the Chor remark he made will also create some news. Away from politics, today is another important day for Q4 results with Bharti infratel, ICICI prulife, Indiabulls Housing, M&M Financials, Tata Elxsi and Ultra tech cement coming up with their Q4 results.
On the derivatives front, tomorrow is the monthly expiry for the April series and there are some interesting moves seen. So far we have seen 42.4% rollovers which is slightly higher and what is more important is a lot of FII buying that happened in Nifty Futures and that too for May futures when election results are due. That took the Nifty futures long exposure to 70% and last Thursday it was at 62%. This sudden jump should be seen carefully. n options the Nifty put-call ratio remained steady at 1.30 vs 1.35 seen at the beginning of the day. 11700 call added 11 lakh positions while 12000 call shed 3.9 lakh positions which makes 11700 the highest for this series. On the put side, 11500 put has the highest open interest followed by 11600 put.
What is the Nifty call for the day?
A mildly negative Asia means we are likely to open flat around 11580-11600 zone and this is a strong support zone. If 11570 is taken out then 11520-11550 will be tested. On the upside, 11700-11720 is a strong resistance difficult to overcome. You would have taken long positions yesterday in 11600-11620 mark and today they will give you profits. If the 50 point target is reached then you could exit that position. But I have another trade to suggest now. You can go for a long position in May futures today with 12000 as the target for the election day or the exit poll day. The target can be reached before also. This position can be different from the daily positions you take. There is a chance of 350-400 point profit for the next series and take these positions to benefit from the upmove, which is going to come.