Many traders are asking How will market react to AAP win.
If we have to take any cues from History in 2013 when BJP won the 3 state election and Hung Assembly in Delhi and formed short term top@ 6415 on 9 Dec 2013 and than corrected till 5933. Classic case of Buy Rumor Sell News
In Current Scenario Market was already feeling nervous before election and has corrected 6 trading session in row so much of it is factored in, Hence it become case of Sell Rumor Buy News after initial Knee jerk reaction which might come on Monday or Tuesday.
Also from Reforms and Fundamental perceptive Delhi election will not make any changes in Lok Sabha or Rajya Sabha. It will be Business as Usual, Loss will more like a prestige issue to BJP.
So going by historical data we might form a short term bottom in next few days and than rally towards new high. Also I feel Delhi will again throw a Hung Assembly ( I have all right of being wrong 🙂 ) as last time for 16 seats the difference between win and loss was less than 1000 votes.
Use my Analysis as an Input to your trading and trade on levels not views.