Indian economic system is trying hard to stabilize the economy for good for the upcoming financial year. The money market and capital market have been facing turbulence for the past few days. So many decisions are being taken and policies are being made for the same. Before the budget of the financial year 2023-24, changes are taking place in the global market.

In November, oil prices have fallen globally by 14% after which, the Indian government reduced the windfall tax on crude oil on 15^th December 2022. The order is issued by the government and said, the windfall profit tax on crude oil produced by companies like ONGC has been reduced from  ₹ 4,900 per tonne to  ₹ 1,700 per tonne. The government also reduced the tax on the export of diesel from  ₹ 8 to  ₹ 5 per liter. Similarly, on the export of ATF, it has been reduced from  ₹ 5 to  ₹ 1.5 per liter. New tax rates on oil are effective from December 16, 2022.

On, 17^th December 2022, under the chairmanship of finance minister Nirmala Sitharaman, the 48^th GST Council Meeting have been conducted. The decisions that have been taken in the council meeting are, in GST, the case will not be prosecuted till the tax default of ₹ 2 Crores. The threshold of tax default or irregularity for initiating prosecution has been raised from  ₹ 1 crore to  ₹ 2 Crore. In the case of fake invoices, this limit will remain at ₹ 1 crore only.

Talking about the capital market, The Nifty50 attempted to recapture the 18,700 level on Wednesday after a tense start to the week at 18,400 levels on December 12th. This attempt was aided by lowering inflation data and expectations of favorable monetary policy action by the Reserve Bank of India in the next meeting. Nevertheless, coordinated rate actions and strong comments from the US Federal Reserve, the Bank of England, and the European Central Bank chilled investor sentiment and put global markets, including India’s, on the weak side.

The fact that Nifty has already dropped below 18,300 levels does not bode well for bulls. Experts believe that a closing below 18,350 opens the door to a protracted correction in the upcoming week. In the upcoming sessions, more weakening might push prices into the 18,130-17,900 range due to follow-through selling.

“Even if this scenario materializes, we do not anticipate the decline to worsen below this support area. As long as we are able to maintain this, the greater degree of up trend is still in place. As a result of the market’s extremely overbought condition, we must view this as a continuing decline. On the other hand, 18450 to 18600 should be regarded as imminent obstacles. According to Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd., “18450 has to be overcome with some authority if bulls are to restore their momentum, which will negate the breakdown from little “Head and Shoulder” pattern on daily time frame chart.”

Source: Times Now