Post rally, markets may turn volatile: Analysts

Vijay C Roy

Chandigarh, June 3

After a sharp rally today, the market may become volatile tomorrow when results of the recently held General Election will be declared, analysts said.

Gold prices decline

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• Gold rate saw a slight decline across India amid the exit poll prediction on Lok Sabha poll results.
• The yellow metal prices slumped Rs 200 per 10 gram in the national capital on Monday.

Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta Investment Interrmediates Ltd, said: “The index has also crossed the barrier of previous high of 23,110 and has managed to stay above it, indicating strength. However, tomorrow comes a major event, the outcome of the general election, which may cause market volatility.”

“Bulls maintain their grip on Dalal Street, with the Sensex and Nifty opening at record highs. Following the general election exit poll, the market saw broad-based buying, with the expectation that the BJP will return to power. All sectoral indices closed in the green, with capital goods, PSU banks, oil and gas, power, and real estate up 5-7%,” said Sharma.

Vikram Kasat, Head Advisory, Prabhudas Lilladher, said exit polls’ over optimism pushes market to new high.