What do the State Election results foretell

The votes are counted in. The Victors are announced. What do these state results tell us for the future? Let us try ad have a look at the results.

The results indicate that the regional parties have become strong again. The National parties were battered in UP. Also, in Punjab it was the Akalis who swung in the votes. For the Congress party, the down slide is clear. After a year of scams, policy inaction the voters have sent them a message.

The Congress has little to lose now by pushing in reforms. The populist measures have not worked so far.

The results also mean that there would be no run away rally in the immediate term. We may move side ways to down till the budget and then the next course of action.

I still maintain one can accumulate stocks and look for a gain of about 20 pc. The time to sell has not yet arrived. 5000-5100 looks to be next support band. We would muddle through till the budget and then have one sharp sell off or attempt a rise after the budget.

The near term looks down. Corrections are healthy and welcome.