Election results declared on Tuesday the 15th of May caused an unexpected reaction and saw markets gain intraday an unprecedented 437 points and then fall to close at 35,543 points, a net loss of 13 points. The BSESENSEX lost 687.49 points or 1.97% and NIFTY lost 210.10 points or 1.98%. BSEMIDCAP and BSESMALLCAP lost 2.82% and 2.84%.

While election drama which unfolded on Saturday and is behind us, new drama on the Karnataka front would provide individuals with substantial entertainment in coming weeks. There are talks on currently to decide on the number of deputy chief ministers whether there should be two or three. With such demands emanating on day one the Throne of Thorns will keep making headlines.

Two headwinds facing the market which would keep them boiling is rising crude prices and the resultant pressure on the rupee-dollar. With oil at significantly higher prices and geo political tensions escalating on the Iran front and also on some of the OPEC nations, could cause markets significant pain.

Shares of Indostar would list on Monday the 21st of May and are likely to pen with gains of about 5-6%. The other big event next week is the fact that beleaguered and controversial Fortis Hospitals would be having its EGM where non-promoter shareholders have called for the ouster of 4 promoter nominated directors. The outcome of this meeting would have a bearing on the bidding of Fortis as well as the decision to accept the bid from -Burman-Munjal bid is being hotly debated and criticised. It would also become a test case where the decision taken by directors which are likely to be removed should be cancelled or reconsidered.

Markets have become technically weak and need to consolidate before their next up move. It makes sense to allow the correction in the markets to complete their course before the next move.