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Below the Quote on Post market comment by Mandar Bhojane, Research Analyst, Choice Broking

On June 4, during vote counting day, Indian benchmark indices experienced significant losses, with the Sensex dropping 4,389.73 points, or 5.74%, to 72,079.05, and the Nifty falling 1,379.40 points, or 5.93%, to 21,884.50.

The Lok Sabha election results had a pronounced impact on the market, reflecting the intense political competition. Initial market optimism was based on expectations of a strong performance by the NDA, which currently holds 295 seats, while the INDIA alliance has 229 seats, indicating a closely contested election.

All sectoral indices, except FMCG, ended in the red, with Realty, Telecom, Metal, Capital Goods, Oil & Gas, Power, and PSU Bank sectors falling by more than 10% each. The BSE Midcap index shed 8%, while the small-cap index fell nearly 7%.

Following a sharp 1,200-point drop, the Nifty exhibited a volatile range between 21,200 and 23,200, resulting in a significant spread of over 2,000 points. The index formed a substantial bearish candle, with key support levels identified at 21,400 and 21,200. If these levels fail to hold, the next supports are at 20,800 and 20,300. On the upside, the Nifty needs to break above 22,800 and 23,000 to regain strength and potentially reach new all-time highs of 23,500 and 23,700.

The India VIX surged by 31%, reaching 31.71 before settling at 26.7475, highlighting increased volatility and market fluctuations in response to the election results. This spike in volatility suggests that traders and investors should brace for continued turbulence.

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