Tax rates on under-construction flats, houses to be slashed this week? How GST council meet may bring cheer for you; check market expectations
Interestingly, there is lot of action awaiting during this week’s trading, which will decide the course of Sensex and Nifty.
The beginning of this week’s trading session kicked off with Sensex once again earmarking its 36,000-mark. Both the benchmark indices Sensex and Nifty are trading in bull sentiments in Dalal Street. After market hours, the Sensex stood at 35,850.16 above 155.06 points or 0.43%, whereas Nifty 50 finished at 10,771.80 higher by 44.45 points or 0.41%.Interestingly, there is lot of action awaiting during this week’s trading, which will decide the course of Sensex and Nifty.
Mustafa Nadeem, CEO, Epic Research said, “A key trigger for the market will be GST meet and another round of cuts in tax rates on many of the items. It has been the point of discussion on the street and further may give some direction as it happens just a month before the Interim Budget.”
It is being known that, the GST council will be meeting this week on January 10. As per the market buzz, the council will once again bring in some revival for SMEs and home buyers. What is being expected is that, the council may decide on rates on under-construction flats, houses and hiking exemption threshold for SMEs. Further, the council may also look into trim down rates in order to drive consumption spending.
Further, Nadeem explained that even RBI meet this week with foreign investors as the decline in corporate bonds haunts the domestic corporate sentiments. It comes after a month when RBI mandated to limit FPI exposure below 50% in single corporate bond and 20% of exposure of portfolio in any single group. Nadeem further added, “We have TCS lined up with earnings along with Infosys, Indus Ind. So overall a lot of big names will be driving the cues for its sector and will be watched critically.”
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Considering above, Nadeem said, “It will be a volatile week but certainly where we may see some Directional move.”
There were three stock recommendations made by Nadeem which can be a good bet for this week.
EDELWEISS - The open and low was the same of the stock and it closed near to days high with good volumes. It also gave closing above the 200 EMA on the hourly chart. We recommend buying above 183 for the target of 185 with the stop loss of 181.50.
UNIONBANK - Stock outperformed well with good volumes and closed near to days high. The stock gave closing above 200 EMA on the daily chart. We recommend buying above 93 for the target of 94.50 with the stop loss of 91.50.
EQUITAS - Stock has shown weakness and closed near to days low with average volumes. The stock has a strong resistance on the daily chart of trend-line. It also formed a flag pattern on the hourly chart. We recommend selling below 119 for the target of 117 with the stop loss of 121.