Another election strategy

Indian bear markets can be quite vicious, but they are also of relatively short duration

The General Election results will be declared this week. Last week, we considered some short-term trading ideas that could gain during the churn as a new government takes over. What little we have in the way of data and anecdotes suggests that there could be considerable uncertainty for a while with a fractured mandate.

That could mean months of volatility. Last week, I had outlined the use of index options under the assumption that the Nifty (and Nifty Bank) could swing 5 per cent or more by May 30. It is not unlikely that volatility will continue into June, especially if