2024 Election Edge: Trading Strategies and Investment Opportunities for Maximum Gain

As Union Election 2024 nears, discover essential trading strategies and important dates to capitalize on market volatility and optimize your investments.

Union election 2024, trading & investing strategies, stock market volatility, prime minister, narendra modi, limo, liquide

Pre-Election Volatility and Trading Strategy Adjustments

As the anticipation for the 2024 Union Election builds, so does the volatility in the stock market. The India Vix has soared by more than 120% in the past one month, reaching a peak of 26.19 on May 27th. This heightened volatility is expected to climax on May 31st, the last trading day before the exit polls are revealed.

Typically, directional movements in such scenarios are sharp yet brief, making it challenging to distinguish between a genuine trend and a mere pullback. Large bets during this period could result in significant losses. In such a volatile environment, it is advisable to minimize the duration of trades to safeguard investments from excessive market swings. 

Key Dates and Market Movements to Watch

Here’s a concise timeline every trader and investor should keep in mind:

May 31, 2024: A critical day for profit-booking; no new buying recommended.

June 1, 2024: Watch out for the release of exit polls in the evening after the final voting phase.

June 3, 2024: Prepare for potential market shifts in response to the exit polls.

June 4, 2024: Counting day, where actual voting results are announced, potentially leading to significant market reactions based on the outcome.

Market Predictions and Potential Scenarios

Market sentiment is currently bullish, with expectations leaning towards the re-election of Prime Minister Narendra Modi for a third term. Should the exit polls confirm these predictions, a bullish response is likely in the markets on the 3rd of June. However, any surprises or close contests could result in increased volatility and potential market corrections stemming from policy uncertainties.

On June 4th, market sentiment is expected to be positive if the actual results align with the exit polls. Conversely, a deviation from these predictions could provoke a sharp market reaction.

Sectoral Outlook and Investment Opportunities

A re-election of the ruling party would likely mean a continuation of existing policies, benefiting sectors such as Infrastructure, Capital Goods, Cement, Defence, Public Sector Units, and New Energy. Investors should align their portfolios to take advantage of sectors poised for growth under stable economic policies.


In summary, the Union Election 2024 offers a unique opportunity to optimize your portfolio by understanding and acting on these critical market dynamics. Should the BJP secure a decisive victory, it would provide a compelling reason for Foreign Institutional Investors (FIIs) to return. A definitive electoral outcome and a government viewed as pro-business and investment will likely draw in foreign capital. 

Post-election, the market sentiment will be shaped by the decisions of central banks on monetary policies, international geopolitical events, and the upcoming Union Budget in July.

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