Will BJP’s win halt the market sell-off?

The Indian stock market may react positively on Monday after the BJP’s strong performance in the Delhi Assembly Elections 2025. Experts believe Dalal Street could open with a gap-up as banking and metal stocks attract bullish interest. Adani shares may also witness sentimental buying.

Boost for Brand Modi
Avinash Gorakshkar, Head of Research at Profitmart Securities, expects a strong opening. He noted that after the Lok Sabha Elections 2024, doubts emerged about ‘Brand Modi.’ However, BJP’s victories in multiple assembly elections have restored confidence. The Delhi win is particularly significant, as BJP is set to regain power after nearly 25 years. Gorakshkar remains optimistic about a positive opening but warns that sustaining momentum depends on other factors.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, agrees. He predicts a green opening for the stock market after last week’s three-day losing streak. However, he advises traders to stay cautious. Global factors like US tariffs and Middle East tensions could influence market sentiment. If global conditions remain stable, large-cap banking and metal stocks may see strong buying interest.

Adani Shares May See Strong Buying
Jain also expects renewed buying in Adani group stocks. He highlighted past trends where Adani shares gained whenever positive news supported Brand Modi. After the Lok Sabha Elections 2024 results, Adani shares saw heavy selling but rebounded after exit polls favored the BJP. Similarly, the stock saw buying after BJP victories in Haryana, Madhya Pradesh, and Maharashtra assembly elections. A similar trend may play out following the Delhi results.

Key Market Levels to Watch
Shiju Koothupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, advises traders to monitor critical levels. He states that Nifty 50 must decisively break above 23,800 to trigger a fresh rally. If that happens, Nifty could target 24,100 and 24,600 in the coming days. However, 23,000 remains a crucial support level.

For Bank Nifty, Prabhudas Lilladher suggests a trading range of 49,700 to 50,900. He emphasizes that the index must cross 50,600 for a sustained upward move. Additionally, the 200-period moving average at 50,900 serves as a key resistance level. A breakout beyond this mark could drive further gains.

While the BJP’s victory could boost investor sentiment, market dynamics depend on multiple factors. Traders should remain vigilant about global cues and technical levels before making investment decisions.

Disclaimer: The views and recommendations in this report are those of individual analysts or brokerage firms, not Mint. Investors should consult certified professionals before making financial decisions, as market conditions can change rapidly.