Nifty Chart of March 2018 after Budget session
09-03-2018 Nifty chart analysis after Budget session
Announcement by Hon’ble Finance Minister in regard to long-term capital gains of over Rupees One lakh will be taxed at 10% without benefit of indexation and dividend tax on mutual fund schemes show sell-off, as domestic investors rushed to dump mid and small caps.
In March, the benchmark indexes are still moving towards south with breaking the support levels as per the moving averages and Fibonacci Retracement levels. PNB fraud also exposed in the showcase at the end of the February which plunged the indexes down due to fear of investors. Government has started to take precautionary steps to avoid such conditions in future. It may become a pressing reason for the Government to privatize public sector banks. The Reserve Bank of India has given an April 30 deadline for all banks to link the Society for Worldwide Interbank Financial Telecommunications (SWIFT) with their respective CBS platform i.e. core banking solution (CBS).
Taking Technical Analysis into account, the daily price chart of Nifty index as on 09-03-2018 is showing a recovery phase as bulls taken the control around 200 days exponential moving average level and formed a Hammer like candlestick pattern. Prior to this, the index has touched the 10150 level for support which was acted as a resistance in the past twice. On a weekly chart of the Nifty index has breakdown the 20 weeks exponential moving average and Fibonacci Retracement level of 23.6% from its last up move from 7893.80 to 11171.55 which had been acting as a support since last 4 weeks and cause for weakness in the counter.
The supportive indicators MACD and RSI are also trending below the average line which point out for negative breath. Upcoming events like Industrial Production data and Inflation Rate on 13th March may give strength for the Indian economy as per forecast data on tradingeconomics.com. As per weekly chart of Nifty index, we can see 10400 level as a resistance and 9920-10000 as a support level, so that the breakout of this levels may give clear view on the future trend of the index.
