The Major resistance would be at 6914 or there about , once it crosses the 6885 leveL. The question is whether the market will either complete the rally before the poll results come out or the wait for it to come out and then rally further.
The fii'S were pre empted once when the rally began as soon as the markets opened on friday. Now the polls come out in the evening, and this would see a jump in the sgx and which could lead to a gap up opening in the morning of Tuesday. But this would not be of major consequence to the normal investor and would be at the mercy pf profit booking by the fii'S.
Just to give you a perspective, most sector index charts are showing similar weakness signs a la Nifty on both the daily as well as the weekly price charts. It is quite hard to fathom as to how the post poll results rally can happen with the price charts showing weakness signs and oscillators on the daily end-of-day charts showing negative divergence signs (read bearish indications).
These are rather ominous warning signals! Believe you me, you can’t just wish them away. Banks that too may be only SBI, ICICI and Axis: can they perform miracles over the next ten days? May be, may not be! No, we are not saying that we are getting back into a bear market but we seriously see question marks written all over the place for an encore of May 2009 Nifty rally of 700-plus points in a day notwithstanding the option prices indicating sellers taking large premium covers but that too on both sides.
Why are they demanding almost equal premiums for at the money put options if we are on a one way street-definitely, these are pointers to mull over seriously and we have very little time left to convert our thinking into action.