Railway budget brings a big disappointment in the stock market. Indices slipped from its all time high and nifty and banknifty currently trading around 7585 and 14931 respectively. Union Budget had set very high expectation amoung investors,traders, middle class people and industrialists.
– Tax sops for the salaried people
– dumping of the controversial retrospective tax
– For boosting investment, tax incentives for industry
– gold import duty cuts
– road map for roll out of the Good and Services Tax(GST)
– The government may set up a price stabilisation fund
– Provide relief to farmers to help them tide over the impact of deficient monsoon
Nifty and Bank Nifty hourly charts is currently in sell mode right from the railway budget event. Currently the resistance zone comes very close to 7803 and 15536 respectively. Reverse your position to positional buy mode if the resistance breaks on the hourly charts.
India VIX hourly charts
India VIX very recently turned to positional downtrend which could probably result in lower participation in the nifty options market and currently the resistance zone comes around 20.26. Only a close above the resistance zone on hourly charts could fuel further momentum in the volatility index.
Nifty Spot Weekly Charts
Nifty on the weekly charts currently trading below 7683 5EMA(high) and currently the intermediate support zone comes around 7469 5EMA(low). A weekly close below 7683 could bring more weakness in nifty and any close above 7683 on weekly basis fuels further moementum in nifty and could take nifty towards 8000 levels.