WEEKLY RESISTANCE FOR NIFTY: 11900, 11950, 12000
PIVOT POINT: 11800
WEEKLY SUPPORT FOR NIFTY: 11750, 11700,
11650
WEEKLY CHART FOR NIFTY
DAILY RESISTANCE FOR NIFTY: 11850,11900,11950
PIVOT POINT:11815
DAILY SUPPORT FOR NIFTY : 11775,11725,11675
DAILY CHART FOR NIFTY
The global set up has been excellent throughout the week, in
fact, US markets hastened towards all-time highs after recent under performance.
However, we failed to capitalize on this positive development as some of the
domestic wounds still continues to hurt us badly. Barring Thursday’s session,
there was no respite in our markets. Fortunately, despite various attempts to
breach 11650, our benchmark managed to defend key levels and went on to confirm
a weekly close tad above the 11800 mark. Tracking the mixed cues from the Asian
peers, Nifty started the week on a flat note then consolidated in a range
throughout the day and ended around the 11700 mark. ON Tuesday some of the
Asian peers were trading with decent cuts before our market opened. The Nifty
hinted at marginal negative opening and in line with the same, Nifty traded
with a negative bias post few minutes of opening. However, the Nifty once again
reverted higher from the support of 11650 and it then rallied higher throughout
the session to end around the 11800 mark. Similar to the Tuesday’s session, the
index opened marginally negative on Wednesday and the opening weakness was seen
as a buying opportunity by market participants. The indices rallied higher from
the opening ticks and traded with a positive bias throughout the session to end
around the 11850 mark. Post opening on a flat note, the Nifty continued its
positive momentum and rallied higher to surpass the 11900 mark in Thursday’s
session. However, the index corrected from the highs in the last hour of the
F&O expiry session and wiped off the intraday gains to end on a flat note. On
Friday’s the Sensex was trading 80 points lower at 39505 levels, with IndusInd
Bank, YES Bank, Vedanta, Tata Steel, and ICICI Bank among the top losers. The
broader Nifty50 index slipped 25 points, to hover around 11,816 levels.
EXPECTATION FROM BUDGET 2019
The expectations are
running high this time around as well – largely on two factors. This will be
the maiden Budget of the newly appointed Finance Minister Nirmala Sitharaman,
and secondly, the Indian economy is showing signs of a slowdown.
A big bang Budget
is what the Street is expecting from the Finance Minister. Investors will keep
an eye on the Fiscal deficit objectives of the government (3.4 percent of
GDP), change in market borrowing plans, and any revisions in tax revenues.
Expectations
from the new government’s full Budget for 2019
Reduction in STT or restoration
of rebate
Financial Sector reforms
DBT, Waivers, and Increase in
short term loans up to Rs 1 Lakh
Plug GST leakages and increase
collection
Divestment
Road map to Direct Tax Code
The larger picture today
is that the government needs to revive growth, generate tax revenues, provide
consumption subsidy to rural farmers, reduce tax rates for taxpayers and
businesses, and incentivise investors to promote investment in capital markets
and real estate. Given the lower than expected GST collections, the
government also needs to identify causes for the shortfall in revenue
collections. This may entail a restructuring of the GST structure. Some of
these objectives are clearly at odds with each other; for instance, growth in
tax revenues and tax cuts, fiscal discipline, and growth in revenues, etc.
NIFTY: A STRONG SUPPORT WILL BE @ 11650; STRONG RESISTANCE LEVEL SEEN @12000
