S&P Warns India's Downgrade Likely !!!

Dear All,

Takahira Ogawa, director of sovereign ratings at S&P, said high interst rates, deficit and inflation were impacting the country's growth, saying that he did not expect Q2 GDP growth to rebound. Subsidy Issue is really going to be a Problem for India due to forth coming Election in 2013.

Next Important Alert - As I advised Our Clients to cover Shorts today is due to..

Postpone GAAR by three years, says Shome panel

In a major boost to falling investments and investor sentiment in the India growth story, a committee set up by Prime Minister Manmohan Singh has suggested deferment of the controversial GAAR for three years and abolition of capital gains tax on transfer of securities, a practice adopted by many Western countries.


The committee, headed by Parthasarathi Shome, has also recommended that GAAR be applicable only if the monetary threshold of tax benefit is Rs 3 crore or more.

Tax experts have welcomed the recommendation on capital gains tax on foreign institutional investors and non-resident Indians, saying it will ultimately help in growth of Indian economy, which has slowed down in the last few quarters because investments have been held back due to India’s rigid tax laws.

Lets wait for the announcement sooner in this week itself.


Government unlikely to cancel all coal blocks allocation

Union parliamentary affairs minister Pawan Bansal on Sunday categorically denied that the government would cancel allocation of coal blocks in the wake of the Coalgate scam.

As the Opposition kept on demanding Cancellation of All coal Blocks and Resignation of Manmohan singh, Coal ministry sources says - its not an Easy task to cancel all coal Blocks

>>> NIFTY <<<

>Click the chart to see in full screen <

As long as bottom of wave (1) 5239 is on hold - Chances for Nifty to bounce from here is very high. As shown on chart 5290 & 5320 remains as a Targeted Resistance.

>>CROMPTON GREAVES<<

>Click the chart to see in full screen <

Crompton Greaves ended its 1-5 wave downside shows that its ready for an upmove. 105.50 is a support for now - as shown on chart - looks like a double bottom unless it breaks in a day or two. If this support holds then an upmove upto 117 is not far away from here. Lets see!!!

Cheers!!!