Saturday, January 21, 2017

Weekly Review - 23rd Jan 2017

Dear All,

The market settled lower for the first time in four weeks with the tax relief for foreign portfolio investors (FPIs) and the resolution of dual control issue on Goods and Services Tax (GST) failing to outweigh the negative earnings from financials, International Monetary Fund (IMF)’s 100 basis points cut in growth forecast and global concerns ahead of US president-elect Donald Trump’s swearing-in ceremony. Trump took presidency oath post market hours on Friday

"Till Thursday, Q3 results were coming marginally above expectations and the market was holding a positive view. However, a poor set of numbers led by financials has annoyed the investors turning them cautious. Additionally, commodity stocks are losing their attractiveness due to consolidation ahead the Trump swearing-in ceremony today. IT and Pharma stocks will be keenly watched as the segment may be effected from the upcoming US policies."

Amid ongoing earnings season with Budget 2017 approaching, the market is expected to witness heightened volatility in a holiday-truncated expiry week. Investors will react to Trump’s inauguration speech on Monday, wherein he hinted again at his protectionist stance by reiterating US policy will be to buy American and hire American, while earnings results of heavyweights like, HUL, HDFC, Bharti airtel and Ultratech will also be in focus.

GAAR - New Fear :-

Key benefits given to Foreign Portfolio Investors (FPIs) under amended tax treaties with Singapore, Cyprus and Mauritius may be negated by the implementation of General Anti-Avoidance Rules (Gaar).

Domestic anti-avoidance law will prevail over treaty benefits in the event of a dispute under the Singapore and Mauritius treaties. This could threaten the lower tax rate for FPIs in the two years between April 1, 2017, and March 31, 2019. Under the amended treaties, short term capital gains tax for FPIs is 15%. However, during the transition window cited above, this will be 7.5%, subsequently doubling to 15%. The tax treaties with these countries were amended last year.

Many FPIs are also worried that benefits under the amended treaties for derivatives and debt instruments may be questioned under Gaar. Tax officials confirmed that Gaar will take effect on April 1 and that the government is not looking at issuing any additional regulations before March 31 at a meeting held recently with industry representatives, said people aware of the development.

>>> Nifty Weekly Chart <<<

>>> Click the chart to see on full screen <<<

Weekly Chart suggest a Bull & Bear Struggle ahead in coming weeks. Every one must trade cautiously on Nifty to Protect their capital - as I hope these volatile may continue for many more days.

>>> Nifty Daily Chart <<<

>>> Click the chart to see on full screen <<<

For the second week in a row - Price failed to cross above 8460 and 100 DMA - which triggered sell off, with Trump Fear.

>>> Nifty Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Price broken the expanding triangle - took support @ 8340. Price may try to fill the gap below 8340 Next Week.

>>> Nifty Bank - Weekly Chart <<<

>>> Click the chart to see on full screen <<<

Again in Bank Nifty - Weekly Chart had a mixed signal - Bearish Candle and Bullish MA. So get ready for more volatile in coming weeks.

>>> Nifty Bank - Daily Chart <<<

>>> Click the chart to see on full screen <<<

Price failed to hold 100 DMA after testing 61.8% retrace, may try to test 50DMA and fill the gap left below as shown on chart.

>>> Bank Nifty Hourly Chart <<<

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Price if breaks the last channel support - Expect another 400 Points correction to fill the gap left below.

>>> AdaniPort - Posted on 18th Jan, 2017 <<<

>>> Click the chart to see on full screen <<<

Wrote on 18th Jan, 2017 - Adani Port may correct as ABC wave completed. See what happened ?

>>> AdaniPort - Profit Booked on Friday Rs.25000/- <<<

>>> Click the chart to see on full screen <<<

We have booked our short with Rs.25000/- Profit.

>>> Voltas - Shorted & Booked Rs.20,000/- Profit <<<

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Booked Rs.20,000/- Profit.

>>> Performance till 20th Jan, 2017 <<<

>>> Click the image to see on full screen <<<

Above performance is not a Pomise or guarantee for the given Profits or Loss.Performance given based on 1 lot at a time and clients Profit differ as per the margin availability and Number of Lots taken by them. We may or may not re-enter the Calls given here hit Stop Loss, as per market movement. The charts given above are just for educational purpose only and we don't recommend any Entry / Buy or Exit / Sell. Reader must taken their own decision or consult their qualified Analyst before making any decision

>>> N4A-SERVICES <<<