The BSE Sensex jumped 5265.74 points or 54.58% in calendar year 2009 to 14,913.05 on 3 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 6752.65 points or 82.74% to 14,913.05 on 3 July 2009.
Foreign fund activity will also be closely watched. Foreign institutional investors (FII) were the key drivers of the recent solid surge on the bourses. FII inflow in the calendar year 2009 amounted to Rs 25,109.90 crore (till 2 July 2009).
The June-September monsoon rains are a major influence on the economy, as two-thirds of Indians depend on agriculture and large areas of the vast south Asian country suffer from a lack of modern irrigation facilities. Poor monsoon rains could dent rural demand, hurt corporate profitability and undermine sentiment in financial markets
The Union Budget 2009-2010 at 11:00 IST on Monday, 6 July 2009, will play a key role in dictating further market direction as it will help in gauge the new government's policy stance. Hopes of big bang economic reforms by the Congress-led government after its thumping victory in the 15th Lok Sabha elections has triggered a solid pre-budget rally.
The corporate sector is expecting a removal of the fringe benefit tax (FBT). Under the current dispensation, an employer has to pay FBT at 30% on the fringe benefit, the taxable value of which is determined in accordance with a formula. FBT is a tax levied on perquisites-or fringe benefits -provided by an employer to his employees.
Domestic brokeragesand fund houses want the government to remove securities transaction tax (STT) on trading in securities in the Budget. The Securities & Exchange Board of India (Sebi) members have already forwarded the demand of premier stock exchanges, BSE and NSE, to Finance Minister Pranab Mukherjee for scrapping STT in the Budget.
STT, which was introduced in the Union Budget 2004-05 by the then Finance Minister P Chidambaram, taxes every purchase and sale of securities entered into in a recognised stock exchange in India in securities like shares, debentures, bonds, and units of mutual funds. Equity investors pay an STT of 0.125% for every transaction in cash for the delivery of shares.
Use Stop loss strictly in your every trade, because market is heavily volatile with narrow trading range.
| INDEX (WEEKLY) | THIS WEEK CLOSE | PREVIOUS WEEK CLOSE 26-6-09 | PERCENTAGE CHANGE (%) |
| SENSEX | 14913.05 | 14764.64 | 1.01% |
| NIFTY | 4424.25 | 4241.85 | 1.11% |
WEEKLY NIFTY CHART
NIFTY FUT. (4424)
Looking to charts, nifty is still facing strong resistance of 4494. If we close above this level then very fast we will reach to 4620, 4700 and may be towards new high also. Safe trader are requested to take entry after 4494. Buy Nifty onaly above 4450 target is 4505-4574-4644-4703 and sell nifty if close below 4372 for taget of 4317-4241-4156.
Rupesh Yatesh Dalal
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