The markets had opened on a positive note tracking the global cues and moved up on volatile grounds expecting a positive election outcome tomorrow. The tea stocks were on the move as the FAITTA came out with an announcement to raise the tea price by Rs 40 in two installments. Fall in inflation number helped the sectors like Capital Goods and Banking to move and give support to the markets to win the race. The recent exit polls showed that the winning percentage is more for the Congress led UPA and also the news that the other small allies are in talks with the Congress leaders gave further strength to this expectation. The election result is going to have a direct impact on the markets in the next trading day. The market is going to test key resistance levels if any of the major political front UPA or NDA comes into power. If that happens then Nifty has target of 3727, 3750 above which it can test 3900 and more. It is unlikely that the third or the fourth front will come to power and if that happens then we may see Nifty going in search of supports of 3510, 3353 and 3137 levels.
