On July 22,2008 if the UPA fails to win the trust vote on the Indo-US N-Deal in the Lok Sabha it will herald early general elections later this year and everything would then be on hold and you’ll see the Nifty and Sensex slide further…pretty quickly to.
If the UPA wins the trust vote by mustering atleast 272 votes ( looks a close possibility right now) there will be a bounce back and a sharp rally
Good idea to hedge in your equity portfolios in the coming week,preferably by buying Nifty Puts to keep any upside open….Naked Positions should be only through safer strangle or straddle strategies unless you are a hardcore derivatives professional or a die hard addict of Derivatives…then you can carry on and gamble on going either Long or Short on Nifty Futures depending on what you assume will happen !
Cheers and Good Luck !