Thought for the day
"Rest is not idleness, and to lie
sometimes on the grass under trees on a summer's day, listening to the murmur
of the water, or watching the clouds float across the sky, is by no means a
waste of time."
—John Lubbock (British, 1834-1913)
Word for the day
Gonzo (Adj)
(of journalism,
reportage, etc.) filled with bizarre or subjective ideas, commentary, or the
like.
(Source: Dictionary.com)
Malice towards none
For the sake of argument assume PM Modi is a school dropout
and Rahul Gandhi's foreign degrees are all genuine and hard earned..
So what's the point?
First random thought this morning
A report suggests that only 4% Indian file income tax return. This
number may be low but is not ridiculous. If all those liable to pay income tax
under current law, do actually file their IT return, the number may actually
not go up materially. Over 90% Indians may still be earning less than the IT
thresh hold.
In his last Mann ki Baat, PM suggested experimenting with no
ticket checkers in trains. Why not also experiment with no IT return? Citizens
earning less than Rs10lacs per annum may just be required to visit IT
department website once in 12 months to press a confirmation button that they
have duly paid the tax due on their income!
Both Nifty and Bank Nifty ended the month of April, closer to
their inflation points. A breakout from here will establish a new bull market
that may last well over three years. However, a failure at this point may lead
to a 5-7% correction in both the major indices.
As I stated earlier, in a case of a breakout, the up move will likely
be led by non-financials, whereas in case of a breakdown the down move will be
led by financials.
For now I shall be watching the following points closely over next
3weeks to take a call on the market direction during June -October period.
Nifty: Weekly close below 7730 for a break down and 8013 for break
out.
Bank Nifty: Weekly close below 16270 for a break down and 17270 for a
breakout.
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