Nifty which had rallied to all-time highs finally succumbed to profit taking amid lack of major reforms announcement in the Budget and the uncertainty over implementation of the controversial General Anti-Avoidance Rules led to a sell off in the eventful week ended July 11.
GAAR :-
The Finance Ministry has clarified that no final decision has been taken on implementation of General Anti Avoidance Rules (GAAR).
This clarification came in the wake of reply given by the Government in Lok Sabha on Friday saying that GAAR will be introduced from April 1, 2015. This spooked the market which closed with loss. It may be noted that the previous government deferred introduction of GAAR for two years, that is, till March 31, 2015.
"The reply stated just the legal status. The Government is yet to take a view on introduction of GAAR," the Revenue Secretary Shaktikanta Das told in an interaction with industry captains on Saturday.
Foreign investors were pinning hopes on deferred applicability of the tax anti-avoidance law by another year to 2016. Comments by Nirmala Sitharaman, minister of state for finance, that GAAR would be applicable from April 1, 2015 led to a sell-off, said market players. The Budget was silent on the implementation of GAAR.
>>> Nifty - As Updated Last Friday <<<
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Wrote last friday - Price and RSI broken the trend line. Advised caution...
>>> Happened and Yet to <<<
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Yes, the fall continues... So where is the support... Lets see on Hourly chart also.
>>> Nifty - Hourly Chart <<<
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Two Possibilities on the above hourly chart. First Wave B completed @ 7730.95 and the fall started for Wave C. Secondly Wave B is till continue with (a) and (b) completed on Wave B and a bounce for Wave (c) of B is pending.
Since RSI also holding when the price down on last friday - suggest a possible bounce back with a possible target of 7650 and 7700.
>>> Bank Nifty <<<
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Bank Nifty have two possible alternatives. First wave (5) truncated and hence a larger a-b-c correction is ON.
Secondly Wave (4) is ON which may get supported @ 14240, 13885 or even a lower support @ 13380. Lets wait and see.
>>> Stock Performance Last Week <<<
>>> INFY <<<
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>>> HCL Tech <<<
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>>> Rel Infra <<<
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>>> Performance Sheet for current Month - till 11th July 2014 <<<
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