By Sandeep PorwalTechnical Analyst, Institutional desk, Ashika Stock BrokingWhen will the Nifty Hit 12,000 Outperformance and strength of the trend have been witnessed in the past election years.
In that context, one can expect a lot more in terms of price appreciation though its a herculean task to time the market.
But ahead of the key event, derivatives data usually indicate what the market expects to happen.
Highest OI concentration stands at 11,000 PE and12,000 CE for the April expiry, whereas for May, its skewed toward the PE side at strike of 11,000 and lower.
Thus its likely that the index may take a while to achieve the milestone of 12,000.Where the Nifty is headed ahead of elections After much ado, the index hit the all-time high.
A photo-finish high indicates that the Nifty will consolidate before resuming its uptrend.
The formation of Doji on weekly chart and bearish engulfing candlestick with follow-up correction on daily charts confirms our view of consolidation.
After a minor consolidation, the index shall resume its uptrend since no major change in stance as the index continues to trade in the structure of higher tops and higher bottoms.Stocks to play during the elections: A thematic play ahead of the key event shall be the approach of the market participants.
With the anticipation of a favourable outcome, one should look to add select auto and cement stocks along with financials stocks.
At a same time, one should be ready to embrace heightened volatility, which usually gets associated with key events such as a general election.
We like TVS Motor, Maruti, UltraTech, HDFC and MM Financial.