India to start taxing capital gains to Singapore investors from 01st April,2017

Dear Reader,

Now, India will start imposing capital gains tax on investments coming from Singapore from 01st April 2017 and fully withdraw exemptions in two years as the two countries agreed to amend a decade-old treaty after New Delhi rolled back similar concessions to Mauritius and Cyprus earlier this year.

With the amendments, announced by Finance Minister Arun Jaitley on today(30th December,2016), investors based in Singapore will no longer benefit from tax exemptions on capital gains taxes.

Changes to the treaty with the Asian financial centre had been widely expected after India this year similarly re-drafted a 33-year old tax treaty with Mauritius.

The tax treaty between India and Singapore had a provision that any changes in the Mauritius treaty would automatically apply to the one with the Asian country.
The move to tighten tax treaties is part of Prime Minister Narendra Modi's anti-corruption drive, which includes tightening loopholes for firms or rich individuals setting up a presence in jurisdictions with tax exemption treaties.

Regulators have long suspected rich Indians were routing cash through these tax jurisdictions, and channeling money back to India in a practice known as "round tripping".
"We are able to give a reasonable burial to this black money route," Jaitley told reporters at a news briefing.

Capital gains tax will be imposed on investments from Singapore that are made from April onwards. The tax rate will be half the prevailing Indian rate for the next two years and rates will then be equated by April 2019. Jaitley said.

Singapore has been an increasingly popular source of foreign investment into India.
Foreign direct investment flows from Singapore stood at $50.6 billion between April 2000 and Sept 2016, contributing more than 16 percent to total capital inflows during that period, second only to Mauritius.

The curious case of Bearish Head and Shoulder Pattern on NIFTY 50

The curious case of Bearish Head and Shoulder Pattern on NIFTY 50

NIFTY 50 taking a pounding from the double Ds, the reason for a sleepless night for fund managers? Let's find out.

Demonetization and Dollar Strength: The surprise move of currency ban of Old Rs 500 and Rs 1000 notes has affected the Indian consumer to refrain from spending in the absence of adequate cash in the system, causing another year of disappointment of earning revival for fund managers it won’t be wrong to considered a strong reason to grow impatience for DIIs to throw in the towel.

FIIs the largest yet panicking shareholder group in India, the sell-off in the emerging market due to FED rate hike seemed like an excuse to run back to green back, shocked FIIs accelerated the withdrawal of funds and pulled the maximum amount from Indian Asset classes on concerns of India’s Consumption Economy slowdown.

The above events are very clearly visible on the Weekly Charts of NIFTY 50 showing markets are preparing for lower levels, The index has shaped up a prominent bearish technical pattern; head and shoulders with the critical neckline support near 7910-7920, In the event of maturity of pattern NIFTY, could crash down to Feb’16 lows of 6800-6900 which was tandem in the free fall of global market due to sudden Chinese Yuan Devaluation tantrum.

Look at NIFTY WEEKLY CHART below.

So, WHY exactly this is so crucial the correction of 10% from here and the fact the head and shoulders bearish patterns can’t change the fundamentals of India’s phenomenal growth potential story, some analyst might welcome it is a healthy correction in bull market, I could have agreed only if Charts were not showing a serious concern for markets. NIFTY monthly chart indicates a free fall below sub 7000 levels now will violate the 2009 onwards intact bull market trend, the multi-year this curious Head and Shoulders Bearish pattern needs to be cautiously played in the market if it breaks the crucial levels. We may see a long term trend reversal and hence a bear market.

So really will this actually materialise? I say we will find out.

NIFTY Monthly Chart.

NSE-INDEX OUTLOOK – 02 December, 2016

For educational purpose only, please trade after consulting with your advisor.

NIFTY 50: On last trading session we have seen a sharp fall in Nifty. It was mentioned in our previous update that Nifty is in Buy Zone and go Long with strict stop loss.

Now what’s next: NIFTY is still in buy zone but we are expecting that market will see lower levels in the days to come. So it is better to sit set aside or go with hedging the portfolio. We are expecting lower levels in Nifty and Bank Nifty. Yesterday also we have seen a huge upmove in Crude oil and Brent. Further we have also seen fall in Dollar Index.

Support: 8160/8117/8100/8050

Resistance: 8250/8288/8305/8400

For short term, we are having negative view on Oil Marketing Companies, Tyre Company, Paints Companies and Aviation Company. However we have positive view on IT and Pharma Companies. 

NIFTY BANK: On last trading session we have seen a fall in Bank Nifty. It was clearly mentioned in my last update that short term rally not ruled out but go with strict stop loss. Further it was also mentioned that for entering into negative zone, we need a closing below 18573 and we have seen 18428.

Now what’s next: Now Bank Nifty enter into Sell Zone. Further Bank Nifty is now trading  below its short term moving average but above long term moving average. Now 18180 to 18130 is the key level to watch in Bank Nifty Spot. If the breach, we may see sharp fall till 17500. If that happen then bank nifty will trade its long term moving average.

Support: 18325/18265/18185/18000

Resistance: 18535/18695/18785/18886

NSE-INDEX OUTLOOK – 01 December, 2016

For educational purpose only, please trade after consulting with your advisor.

NIFTY 50: On last trading session we have seen a huge gain of 82.35points (+1.01%). As mentioned in our previous update that Nifty is in Buy Zone and go Long with the Target of 8200 and 8220 and happy to share that Nifty meet our levels and close at 8224.50.

Now what’s next: NIFTY is in buy zone as that is trading above its short term as well as long term moving average, we suggest you to go long with strict stop loss. NIFTY will enter into Sell zone if it closes below 8133.85, rally may continue in Nifty with immediate resistance to the up move at 8250/8296 .Yesterday we saw a sharp surge in CRUDE OIL  as OPEC reached agreement on output free by 1.2 mbpd starting Jan 1, 2017. A moderate Oil price is sustainable our economy have sufficient forex reserve for any external shock. On last trading session FIIs were net sellers of Rs.434.42 Crores while DIIs were net buyers of Rs. 676.68 in Capital markets. Nifty would see strong support at 8200/8161/8150/7997/7975. And resistance at 8250/8288/8296/8305.

For short term, we are having negative view on Oil Marketing Companies, Tyre Company, Paints Companies and Aviation Company. However we have positive view on IT and Pharma Companies.  

NIFTY BANK: On last trading session we have seen a huge gain of 404.05 points (+2.22%). It was clearly mentioned in my last update that short term rally not ruled out. Further it was also mentioned that for entering into positive zone, we need a closing above 18559. We have seen a closing at 18627.

Now what’s next: Now Bank Nifty enter into buy Zone. Further Bank Nifty is now trading above its short term as well as long term moving averages. Now go long in Bank Nifty but with strict stop loss. As today is expiry of weekly contract, so we are expecting huge volatility. Bank nifty will enter into sell zone if it close below 18573.

Support: 18585/18503/18436/18325

Resistance: 18690/18780/18880/19010

NSE-INDEX OUTLOOK – 30 November, 2016

For educational purpose only, please trade after consulting with your advisor.

NIFTY 50: On last trading session we have seen a flat gain of 15.25points (+0.19%). As predicted NIFTY faced a resistance near 8200 level, NIFTY closed flat after reaching the intraday high of 8197.35. We believe that NIFTY will enter into sell zone if it closes below 8119. However the overall sentiment remains NEGATIVE as market is trading below long term average. Go long with caution target remains for 8200 and 8220.

Now what’s next: As predicted by us yesterday the resistance to Nifty remains at up move of 8200 the Nifty faced resistance with Intraday high of 8197. NIFTY is in buy zone we suggest you to go long with stop loss at 8090,rally may continue in Nifty with strong resistance to the up move at 8154/8161/8188/8205/8250/8296.Yesterday we saw a sharp correction in CRUDE OIL as IRAN rules out production cuts , OPEC struggles to reach agreement on output curb on already suffering oil rout. A lower oil price is positive for NIFTY. On last trading session FIIs were net sellers of Rs.715.30Crores and DIIs were net buyers of Rs. 534.20 in Capital markets. Nifty would see strong support at 8100/8064/7990/7950/7935/7897/7800/7777.

NIFTY BANK:On last trading session we have seen a minor loss of 77.70 points (-0.4%) as updated in our previous update the NIFTY BANK is in negative zone and every up move is the opportunity to sell . We are expecting a bounce back on NIFTY BANK however overall sentiment is weak.

Now what’s next: Our view is still same i.e. sell on rallies. We expecting bank nifty to trade below is long term moving average in the coming day.

If today NIFTY BANK Closes above 18559 then NIFTY BANK will enter into BUY ZONE.

The support for NIFTY BANK is at 18140/18050/17980/17720 and resistance to the up move is at 18540/18690/18780.

NSE-INDEX OUTLOOK – 29 November, 2016

For educational purpose only, please trade after consulting with your advisor.NIFTY 50: On last trading session we have seen a flat gain of 12.60 points (+0.16%) as mentioned in our yesterday’s outlook on Nifty where we mentioned that the NIFTY has entered into the buying zone. It closed above the crucial levels of 8090 however the Index is still trading below Long Term Moving Average due to which overall market sentiment remains negative. We suggest you to go cautious with Long positions.
Now what’s next: Nifty is in buy zone. we suggest you to go long with stop loss at 8090 for the target of 8200 and 8220. This rally may continue in Nifty with strong resistance lying at higher levels. Going through the week the investor look for a hectic week of data from Global cues,  it is unlikely that traders will go short on USD going into the week as decent jobs report expected on street, Italian Referendum and Presidential Elections in Austria will surely imply volatility in markets. On last trading session FIIs were net sellers of Rs.1436.40Crores and DIIs were net buyers of Rs. 1233.79 in Capital markets.
Support: 8100/8064/7990/7950/7935/7897/7800/7777.Resistance: 8154/8161/8188/8205/8250/8296If today Nifty closed below 8103, then Nifty will enter into sell Zone.

NIFTY BANK: On last trading session we have seen a moderate loss of 205.85 points (-1.1%) as updated in our previous update the NIFTY BANK is in negative zone.
Now what’s next: After yesterday fall, now we are expecting short term bounce back in Bank Nifty but overall sentiment is weak. Every up move in Bank Nifty is a opportunity to sell. The overall sentiment for Bank Nifty is week.
Support: 18140/18050/17980/17720Resistance: 18540/18690/18780If today Nifty Bank closed above 18643.50, then Nifty Bank will enter into Buy Zone.

NSE-INDEX OUTLOOK – 28 November, 2016

NSE-INDEX OUTLOOK – 28 November, 2016

For educational purpose only, please trade after consulting with your advisor.

NIFTY 50: On last trading session we have seen a gain of 148.80 points (+1.9%)  and closing at 8114.30. Now Nifty has entered into the buying zone as it closed above its short term moving average. However this trend is still subdued at Index is trading below its Long term Moving Average.

 Now what’s next: Nifty saw a sharp rally on Friday and entered into buying zone but we are expecting this rally may not continue. We have seen a continuous up move in US Dollar index which we expect is negative for this market.  A big Interest Rate cut by RBI can boost the rally.

Support: 8064/7990/7950/7935/7897/7800/7777.

Resistance: 8161/8188/8205/8250/8296.

Now, nifty will enter into sell zone if it close below 8097.50.

NIFTY BANK: On last trading session we have seen a moderate gain of 251.2 points (+1.4%) however overall Index looks weak on the charts and it is still is sell zone with negative sentiment. The key thing for consideration is that Nifty is trading above its short term moving average and below its long term moving average. However in the case of bank nifty, the case is opposite. Bank Nifty is trading above its long term moving average however below its short term moving average. So we are expecting that Nifty will come down to align with Bank Nifty.

Over the weekend a great move from RBI to curb excess liquidity from Market by  announcing the CRR hike by 100% . This is negative for banking shares specially PSU Bank as they have to deposit more money with RBI without getting any interest on that. We are expecting Base rate cut from Bank at very high pace, because since they are not getting any Return from RBI on his deposit, then why they will pay you 6%+ interest on FDR.

Support: 18140/18050/17980/17720 Resistance: 18540/18690/18780

On last trading session FIIs were net sellers of Rs. 372.88 Cr and DIIs were net buyers of Rs. 997.84 Cr in Capital markets.

We believe the rally in NIFTY will be supported by NIFTY IT and NIFTY Pharma.