This is because at 10,800 level it has already priced in a victory. However, a BJP loss could trigger a 3.4% correction to 10,435, coming as it does amid rising bond yields and a weaker rupee. The poll of polls predicts a hung assembly with the BJP in the lead and JDS getting 19 -38 seats. “Indeed, markets have more or less priced in a BJP victory and so the upside might be limited,” said Rohit Srivastava , fund manager at Sharekhan by BNP Paribas. In the event of a disappointment, though, potential correction could be steep,” said Chandan Taparia, derivatives analyst , Motilal Oswal Securities .A BJP loss could witness covering of the sold puts, which would exacerbate the fall.

Source: Economic Times May 14, 2018 04:18 UTC