Satendra Singh | Sep 18, 2019 15:22
On analysis of the Nifty 50, in different time frames, I find that the prevailing exhaustion in Nifty-Auto looks evident enough to extend more bearish pressure on Nifty 50, due to unresolved GST issue and costlier crude. No doubt that the Nifty 50 gave up most of their early gains as waning hopes of tax cuts to spur demand hit automakers and offset a boost from retreating oil prices.
Shares in other Asian markets were largely flat on Wednesday ahead of an expected U.S. interest rate cut, while investors also assessed the impact of higher crude prices in the wake of the weekend attacks on Saudi oil facilities. No doubt that India's goods and services tax panel is unlikely to approve lowering the tax for the auto and allied components sector this week, as a study has warned of major revenue losses, Reuters reported on Tuesday, citing two government officials. companies have long argued that a tax cut is necessary to spur demand and lift the ailing sector. For watching my latest video on analysis of Nifty 50 and Bank Nifty, in a live chart, on September 18th, 2019, subscribe to my YouTube Channel ‘SS Analysis’
Finally, I conclude that Nifty 50 looks amid growing uncertainty due to prevailing exhaustion in global equity markets due to growing skepticism over U.S. Central Bank’s final outcome within next few hours. On the other hand, steady gold looks evident enough to reflect the growing uncertainty in global equity markets; which seems to continue for a longer duration due to extending Sino-U.S. tariff trade war tussle. No doubt that the Federal Reserve can only delay the global recession but cannot end the probabilities of the final recession; which seems to be waiting for an excuse at a global level. Secondly, London's main index see-sawed in early Wednesday trading as investors awaited the outcome of the U.S. Federal Reserve meeting to get a sense of how far policymakers in the world's largest economy will go to tackle a global slowdown.
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Written By: Satendra Singh
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