MARKET WRAP FOR 29TH FEB:Budget 2016 brings Market Jitters, Nifty closes .44% weaker, Banks Cheer!

by Elearnmarkets on Market Analysis, Market Wrap
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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:

  1. An important trendline has been breached in the past few days near the level of 14100.
  2. The next support is present at the level of 13270 which is not very far.
  3. 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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Read more articles here:

http://www.elearnmarkets.com/blog/market/nifty-chart/

http://www.elearnmarkets.com/blog/market/nifty-live/

http://www.elearnmarkets.com/blog/market/nifty-live-chart/


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