Stock Market Rallies as Trump Leads in US Elections; Sensex-Nifty Surge

Stock Market Surges as Trump Takes Early Lead in US Elections; Sensex and Nifty Soar, 10 Stocks Become Rockets Despite Cautious Market Outlook

The stock market opened its session with great enthusiasm, as early US election results reflected reports of Donald Trump’s better performance in key states. Sensex and Nifty indices took a wild ride as many stocks saw their prices soar. The Gift Nifty traded with caution on Wednesday. It allowed the Indian markets to report a muted start.

However, market sentiment was on an upswing when the polls of Kentucky, West Virginia, and Indiana came, showing that Trump had been going ahead by a margin. According to the preliminary trends, Kamala Harris was ahead in Vermont for Democratic candidate.

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Summary of Gift Nifty and Global Markets

The Gift Nifty was quoted at 24,256.70. It edged down by 40 points or 0.16 percent. This soft performance came as other Asian markets traded pretty much in positive territory compared to it, such as Japan and South Korea, which were up on the board. The Nikkei index in Japan was at 38,843.50 and had gained 263.50 points or by 0.68% as it traded early in the trade.

Australia’s S&P/ASX 200 traded with a similar positive trend and was reported to have gained 67.90 points or by 0.83% as it traded at 8,200.90. The Kospi index in South Korea rose 4.05 points, or 0.16 percent, to 2,581.57. Chinese markets were not yet open.

The markets in the US were surging sharply across the globe at night. Dow Jones Industrial Average was increasing by 427.28 points, that is 1.02 per cent as it closes at 42,221.88. It also gained 70.07 points or 1.23 per cent while closing for S&P 500 Index at 5,782.76. These increases seemed a good ambiance in the international markets but Indian market continued with some caution because its domestic opening was not definite.

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Trading and Options Data of Nifty

Going against global positive sentiment, the options for Nifty were bearish as there was a greater call writing compared to the put writing, meaning this market is more alert, wherein the traders are expecting lesser increases in the near term.

The maximum open interest in the options with a concentrated open interest placed at 25,000-strike call was reportedly at 79.95 lakh; while, open interest placed at the 23,500-strike put is 51.33 lakh. As far as open interest volumes are concerned, maximum trading activities took place at a range of 24,200-24,500 in call options, followed by trading activity range from 23,800 to 24,100, in case of the put. This indicates strong resistance to prices near 24,200 to 24,500 while good support can be sensed nearby 23,800 to 24,100 zone.

SAMCO Securities believed that: “Sellers’ confidence remains high while the unwinding of puts strengthens the bearish view as elevated call writing continues within the resistance zone. The put-call ratio PCR has gone down from 0.79 to 0.67 that suggests cautious approach.”

The “max pain” level is put at 23,900; that is the level where most options contracts are set to expire worthless. It will be a very critical point while moving Nifty since it is at that juncture that traders would start reevaluating their next moves.

Highest Gainers Stocks During the Optimistic Market

In this reaction of the market due to the US election results, 10 stocks have been recorded as hot gainers. In other words, they were moving more like rockets in the trading session. These stocks are perhaps among the key market movers driven by the overall sentiment arising from the optimism even amid a cautious start. Names that have not been reported earlier may be spread across crucial sectors like banking, tech, and manufacturing where it has often been the major area of movement because of international political events.

Conclusion

The results of the US election seem to have brought in a positive response from the stock market, especially when Donald Trump was leading in most of the key states. Gift Nifty did reflect some caution, but still, the global markets such as Japan and the US have gained strongly. The data of options for Nifty reflect that the market participants still remain cautious and in the near term, strong resistance and limited upward momentum would be seen. Traders will closely watch how US election developments filter into global markets during the course of the day.

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