NIFTY Index Chart Analysis

MOVING TOWARDS A CORRECTION

The Union Budget has introduced several proposals that will affect the investment gains. They mark an increase in LTCG and STCG along with the STT for futures and options. Historically, whenever the government has increased the capital gain taxes, the market has reacted negatively. The equities reacted sharply soon after the budget proposals but recovered by the end of the day. The Nifty is trading below the previous week’s shooting star candle and indicates potential for reversal if it closes below 24,504 by the end of the current week.