Nifty and Bank Nifty Future ahead of Union Budget 2019

Bank Nifty Future and Union Budget 2019
Nifty & Bank Nifty Future and Union Budget 2019

Indian share market ended another range bound day. At close, Nifty and Sensex gained 6.5 points and 22.77 points respectively. Bank Nifty was volatile today, it closed at 31382.30 gained 99 points during the day. Bank Nifty future has shown more than 200 points movement during the day.


Today’s Market Update -Nifty Stocks


Nifty Mid Cap and Small Cap 100 index also gained 69.75 and 21.65 points for the day. DHFL, Indiabulls Venture, ITI were the top gainers in mid and small cap space. Among the Nifty 50 stocks, top gainers were Indiabulls Housing, IndusInd Bank, Zee Entertainment, ITC, and IOCL. The top five losers in Nifty 50 stocks for the day are Eicher Motors, Gail, Tech Mahindra, Dr. Reddy, and Infosys.


On the sectoral front, except IT, Auto, Metal and Consumer durable all other sectors are closed in green today. Due to Budget effect, some buying was seen in Infra, Energy and PSU Bank stocks today. Brent crude oil price is positive today after the last two days decline, at present, it's working at $ 63.09/barrel. Indian Rupee against the dollar is below Rs 69, the appreciation in rupee is because of the fall in crude oil price.


In the month of July, FIIs are the net seller whereas DIIs are the net buyer. The fall in crude price, good monsoon and Budget can boost the sentiment of the Indian share market. New reforms set by the BJP government can force the FIIs to come back in the Indian share market.  


Expectations from the Union Budget 2019 sector wise


Though we have mentioned few important expectations from the upcoming Union Budget 2019 in our last weekly report. Here we have again mentioned expectations from the Budget on sector-wise.


Tax Proposal                - Increase in Income Tax exemption limit
               - Corporate Tax likely to be lowered
BFSI                             - Increase in Capital Infusion and privatization of PSU unit
               -Tax exemption limit for interest on deposit to be increased
Agriculture                   - Allocation of Crop loan and credit
Infrastructure              - Re-introduction of Tax-Free Bonds to Boost Investment
Capital Goods             - Used machinery imports to be discouraged, encourage make in India
Real Estate &              - Allocation of Funds in order to complete the stalled projects
Housing Sector
Metals                          - Reduction of Custom duty for petcoke and coking coal
Oil & Gas/                    - Tax holiday to power companies
Power


Technical levels of Nifty and  Bank Nifty Future target for tomorrow 


Primary Trend of Nifty Future: Volatile (Bias Sideways) 
Nifty Future Range Bound Trend: All up moves Initiates Profit Booking (Sale) @ 12042, whereas all Down moves Initiate Short  Covering (Buy) @ 11879
        
If Nifty Future moves above 11964 then you should Buy with 1st Target of 11988 during the day with a Stop Loss of  11938 FOR the Target of 11988- 12004- 12042
If Nifty Future moves below 11938 then you should Sell with 1st Target of 11914 during the day with a Stop Loss of 11964 FOR the Target of 11914- 11879- 11854


Primary Trend of Bank Nifty Future: Volatile (Bias Sideways) 


Bank Nifty Future Range Bound Trend: All up moves Initiates Profit Booking (Sale) @ 31638, whereas all Down moves Initiate Short  Covering (Buy) @ 31320
If Bank Nifty Future moves above 31534 then you should Buy with 1st Target of 31590 during the day with a Stop Loss of  31470 FOR the Target of 31590- 31638- 31688
If Bank Nifty Future moves below 31470 then you should Sell with 1st Target of 31424 during the day with a Stop Loss of 31534 FOR the Target of 31424-31376-31320
Conclusions:
Tomorrow morning market will open as per global cues. Indian share market will have weekly options expiry tomorrow. Both Nifty and Bank Nifty future will remain volatile in the coming two days. The market is already volatile due to Union Budget 2019 and the weekly expiry will make more volatile tomorrow. Traders should remain cautious for trading tomorrow. We are going to witness a highly volatile trading session on Thursday and Friday so it is advised that if you are in profit, please book it partially. It would be risky to trade on the coming two days. It is better to avoid trading for the coming two days if you are a new trader.


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Happy Investing!


Finogyan Team


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Nifty and Bank Nifty Future ahead of Union Budget 2019 Nifty and Bank Nifty Future ahead of Union Budget 2019 Reviewed by Finogyan on July 03, 2019 Rating: 5

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