Lok Sabha elections: Traders see Nifty crossing 12,000 on counting day

Traders are buying 'calls' of much higher levels and selling 'puts' to maximise their gains

Market traders are building positions for a sharp upmove on May 23, the day of counting of election results. 

The 12,000 and 12,500 ‘call’ option contracts of the Nifty are seeing the maximum open interest (OI) of 1.44 million contracts and 1.13 million contracts, respectively. 

“We could see much higher market levels on the results day, with the 12,500 strike price also seeing sharp OI build-up. This indicates that Nifty could easily breach the 12,000-mark, if results are similar to the exit polls, and could even head towards the 12,500-level,” said Hadrien Mendonca, senior technical analyst at IIFL.

On Tuesday,