Lok Sabha Elections 2024 trading strategy: After a sixth phase of polling in Lok Sabha Election 2024, poll pundits are busy assessing the Lok Sabha Election outcome on 4th June 2024. However, stock market experts are also active as they zero in on the segments that may outperform the average market returns in the short, medium, or long term. According to stock market experts, the Indian stock market is expected to remain highly volatile from 1st to 4th June 2024, and an investor must ensure the safety of one’s capital in this highly volatile market. They said that India’s VIX today is in the 19 to 23 range, but we may see some more upside in the volatility index of the Indian stock market. They also said that most of the pre-poll surveys have found the BJP-led NDA government in New Delhi, and hence, much will depend upon the outcome of Lok Sabha Election Exit Polls, which will be released on 1st June 2024 evening. They advised traders and investors to look at manufacturing, banking, and power and energy segments as they may outperform others in the post-Lok Sabha Election rally. They also advised investors to avoid ‘monkey and donkey’ stocks and look at the quality stocks that have been delivering quarterly solid numbers, and their debt exposure is either low or zero.
How do we trade on Lok Sabha Election results date?
Unveiling stock market strategy keeping Lok Sabha Election results in mind, Sandeep Pandey, Founder of Basav Capital, said, “We are expecting a fresh bull trend after the Lok Sabha Election 2024 results are announced. Hence, my suggestion to traders and investors is to look at quality stocks, which are debt-free or companies with relatively lower debt exposure. However, delivering a series of positive quarterly results is a must before looking at the debt exposure of the company,” adding, “One should avoid looking at operator-driven monkey and donkey stocks as such stocks also move upside in a bull market.”
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“The first rule to trade, keeping Lok Sabha Election outcome in mind, is to ensure the safety of one’s capital. The second rule is never to forget the first rule. You can make money only when you have capital in hand,” said Sandeep Pandey of Basav Capital.
Echoing Sandeep Pandey’s views, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “Most of the pre-poll surveys have found a BJP-led NDA government post-Lok Sabha Elections. So, one will have to focus on the sectors that are in focus of this Modi-led NDA government, as government policies are expected to continue if the results come in sync with the pre-poll surveys.”
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Segments to look at
On segments that one may look at for a value pick, Sandeep Pandey of Basav Capital said, “In the current central government, capex has been growing continuously in the manufacturing sector, and one can look at this segment for a value pick. Apart from this, the recent credit given by the Reserve Bank of India will provide extra liquidity to the Indian banks to meet the rising demand in the manufacturing sector post-Lok Sabha Polls. Power and energy segment will be another segment where one can look at keeping the Lok Sabha Election results in mind.”
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 28 May 2024, 06:14 AM IST
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