Index reacted well to the Budget session we saw an upside of 150 points for the day. Although assembly was suspended in between when Mr Arun Jaitley was speaking but till now it was a balanced budget with positive side of 5% deduction in TDS for 3 to 5 lack income bracket. Many schemes work well for farmers, women’s, youth education & even clean India in 2016. The only thing which was surprising was that the Railway Budget was closed just in 15 minutes, where we were expecting many more from Railway, on other side Road development recorded for 143 km construction every day in 2016.
We expect index to be positive for tomorrow as well, as budget had not been done yet, although prices are standing on 3 months high and we saw a biggest recovery for the day, in last three months. Still expecting prices to touch for 8840 tomorrow, where on support falls at 8640
Bank Nifty Outlook:
Positive reaction was seen on Banknifty after the budget session started, day ended with almost 500 points plus, the main upswing was seen in the prices when the tax section was opened by Mr Arun Jaitley, tax slab had been increased from 2.5 lack, now the person earning 3 to 5 lack had to pay the TDS of 5% just in place of 10% where, people earning 50 lack to 1Cr will be attached with 10 % surcharge. Over and all 12500 will a sweet saving to people falling in any tax bracket. Words are soft for GST bill as well and cash transaction will be restricted to only 3Lack only.
For tomorrow we expect prices to take some more pull for 20300 handle and for this immediate support falls at 19800
Nifty 50 Gainers
Nifty 50 Losers
Nifty Resistance & Support
|R1 / R2||8840/9050|
|S1 / S2||8640/8500|