Nifty looks set to go North, but Karnataka results to dictate trend

The Nifty has inched above 10,800, and purely on the basis of previous trading patterns, we'd predict a movement till 10,950 or so

The Nifty looks set to go North, but it could see a trend reversal if the Karnataka Assembly results are not to the market’s taste. In fact, that event will determine the short-term trend. This is one of those rare situations of “known unknowns” where the market has no reliable information to bet on.

Normally, any analysis of market trends starts with an assumption that the movements represent consensus opinion based on aggregated, discounted information. However, the outcome of free elections is an unknown.

If the Bharatiya Janata Party (BJP) wins a majority, the market will respond positively. If the