Poll results will pivot market sentiment

Technically speaking, the Nifty has risen through April-May. The current target would be 10,900-10,950 but a BJP win in Karnataka could super charge the uptrend to test the all-time highs at 11,170

The short-term market sentiment could pivot one way or another, depending upon the results in the Karnataka Assembly election results today. If the BJP wins a clear majority that’s likely to super charge the bull run and it may push the markets to new all-time highs. A win by the Congress would probably trigger a correction, while a hung Assembly could mean a waiting period until clarity emerges.

Karnataka aside, geopolitics could prove a dampener. Donald Trump deciding unilaterally to re-impose sanctions on Iran will lead to persistent upwards pressure on oil prices and it could hurt India, in particular.