Nifty saw a very volatile session covering a range of nearly 200 points . It closed weaker ultimately, down some .44%. BankNifty on the other hand was a winner on cues of rehabilitation allocations introduced by the finance minister to the tunes of near Rs. 25ooo crores.
On the chart of BankNifty the following phenomenon can be noted:
- An important trendline has been breached in the past few days near the level of 14100.
- The next support is present at the level of 13270 which is not very far.
- The RSI (momentum indicator) has shown a good positive divergence which is a positive indication for the banknifty.
Presenting you with some snippets from the Budget:
- Two new Organic farming scheme for 5 lakh acres.
- Rs. 19000 crores for Gram Sadak Yojana
- Rs. 2.87 Lakh crores to be spent on Villages in total.
- Total Outlay on Roads and railway Rs. 2.18 Lk Crores.
- Rs. 2.21 Lakh Crores on Infra Projects.
- Registration of Company in One Day for Start-ups.
- Rs. 25000 crores for Banks rehabilitation.
- 100% FDI for food processing.
- Planned expenditure increased by 15.3% .
- Relief Sec 80GG (deductions on rent paid) increased from Rs. 24000 p.a to Rs. 60000 p.a
- LTCG on unlisted securities limited to 2 years from 3 years.
- Additional interest deduction for first house.
- No service tax for building houses upto 60 sq mtrs.
- 10% dividend tax for recipient over Rs. 10 lakh per annum.
- Penalty for concealment of Income from 100-300% to 50-200%.
- Rationalisation of TDS provisions.
- 11 new benches for Income Tax Appellate tribunal.
Lets look at some stocks which saw considerable volatility and movement today.
To start with we have ONGC which closed a good 10% lower from the previous day. The downward sloping channel on the chart was a good resistance today.
Next we have ITC which saw a volatile session, giving up gains on the announcement of 15% cess on sale of cigarettes but managed to climb back and close higher.
Axis bank also witnessed extremely high volumes of trading, nearly 4 times of the average volumes. The prices as evident on charts have been in a consolidation phase or in a box range but not the momentum indicator RSI which is giving positive indications.
The winners of the day are:
Aurobindo Pharma: +7%, been gaining since it got included in the Nifty50 family.
IDBI: +5.94% on cues of banks rehabilitation budget announcement
JP Associate- +5.19%
On the losers list:
ONGC -10% iwth heavy volumes
Arvind Limited -6.99%
Cairn india keeping up with the losing streak, -5.52%
The international picture was also very grim today with all major indices closing in red. Chinese shanghai composite was the weakest with a closing nearly 2.86% lower, in the morning it was some 3.45% down, the Hang Seng index closed 1.30% lower where as the European indices are mildly in the red zone.
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