BUY HINDALCO 195 PUT @ 3.8 TGT 4.8/6
BUY GLENMARK 460 CALL @ 7 TGT 11/15
Worst ever
crash of the year 2019. The Sensex and Nifty posted their worst single-day fall
of 2019 as investor sentiment was spooked by the Budget proposals. The Finance
Bill which was tabled in the parliament by the country's first full-time woman
Finance Minister Nirmala Sitharaman called for increasing the minimum public
shareholding for all listed companies to 35% from the current limit of 25%,
threatening a wave of new issuances. Apart from increasing the public
shareholding, the Budget for full financial year 2019-20 also called for
imposing 20% tax on share buy backs and also raised the tax incidence for
foreign portfolio investors and high net-worth individuals. The Sensex
slumped as much as 907 points to touch intraday low of 38605 and Nifty dropped
287 points to hit intraday low of 11523. From the
stock market’s point of view, this budget is at best a hogwash. Looks like, the
government treats investing in line with cigarette and alcohol use. That's why
it finds reason to impose taxes on equity in some form or other. This year,
instead of abolishing taxes on dividend, it has imposed a tax on share
buybacks. Both are ridiculous, because both are exercised with tax-paid money.
Dividend instantly gives expensive money in the hands of investors, while
buyback creates value.
Some more choppiness could be witnessed in the
upcoming session. The recent swing low of 11525 levels could help bears to
rule. Now 11500 levels has become an impotent level for nifty. Only above 11800
levels could help bulls to comeback in the ground. Traders should trade with proper strategy in
such scenario. It
looks prudent for traders to avoid short-term bets and focus on any breach of
larger trend, which may chalk out the future course of action for the indices.
The 11450 level still looks like a sacrosanct support, a breach of which shall
take the Nifty below the 11400 level. A decisive close above the 11800 level
should usher in a sustainable uptrend.
More about intraday tips on Google +
Resistance: 11600, 11700, 11800
Support: 11500, 11400, 11300
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