After a long drawn election campaign the exit polls predict that the ruling NDA will come back with a comfortable majority.
This has led to a very sharp rally in the markets today with the benchmark indices at all time closing highs. As usual we are going to study the charts and find out what they tell us and if today's move do indeed mark a change in character of the overall technical pattern.
Two key levels to watch out for in the charts are the 16,000 levels on the downside and the 18,000 on the up-side. If we get a clear breach of the 18,000 levels and the market sustains for a few days then we will be perhaps targeting the all time highs again. A breach below 16,000 will be extremely bearish, but in my opinion very unlikely to happen. Hence if you are looking to build a long position, one can do so with 16,000 as the stop.