Mumbai: With the exit polls predicting a strong performance by Modi-led NDA in the general elections, the market is expected to see renewed buying this week.
"The exit results are better than the expectations. Markets will move up by 2-3 per cent in next few days. I am quite optimistic at these levels. Investors should increase equity allocations," said Motilal Oswal, CMD, Motilal Oswal Financial Services.
The market experts are now predicting that the Nifty should cross 11,700 levels this week.
In fact, the Sensex and Nifty surged over 1 per cent on Friday ahead of the exit poll results as if the market has sensed a BJP victory.
While the Sensex gained 815 points during the last two sessions, the Nifty saw a rally of 250 points during the same period.
"We are now stepping into a crucial week and since the election verdict is one of the most watched as well as influenced event for our market, people should gear themselves up for wild swings. For the last couple of weeks, global uncertainty has been weighing down heavily on our markets; but now, till the time this event gets over, we may probably be decoupled from the global peers for a while. As we all know, such events are difficult to predict and since they can have a massive impact on near-term movement, one needs take several scenarios into a consideration," said Sam-eet Chavan, Chief Analyst-Technical & Derivatives, Angel Broking.
The marketmen are predicting that if the Modi-led NDA comes back to power with full majority the Sensex could cross 42,000 in the near further.
The expectations are that a lot of foreign funds would flow in if the election results come in the BJP's favour.