In rising from the recent lows, the markets have gathered too much of froth, especially in the last 2 trading sessions. Isn't it ironically that the exit polls of a 'dry-state' have added so much of froth to the markets?
A BJP victory is already discounted by the markets - if the actual results are in-line with the market expectations, we could see some profit-booking and if the results are below expectations, a knee-jerk sell-off.
I would give a 60% chance of the Sensex & Nifty closing lower on Monday (book profits in the Puts we picked up on Friday), only to pick up steam once again later in the week.
Just for tomorrow, its better to trade light.
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