Just when the Nifty was in mood of rising to 3000 and beyond, the interim budget put another spanner in the wheel.
The market participants were expecting 'budget magic' while it turned out to be a summary of statement of account of the government for the previous financial year. And the report card was pathetic- with budgeted fiscal deficit rising to 6% and one wonders what the final figure will be when the actual data comes out!
The government seems to have found a good 'scapegoat' of global recession for it's own ineffeciencies.
Te market crashed two consecutive days , the Rupee crashed and bond prices shot through the roof . Enough for any FM to lose sleep. But the problem is there is no FM !! With elections round the corner, no one seems to be concerned !!
Nifty broke below it's crucial support level of 2880 yesterday and is now near it's second crucial support of 2725. A close below this can trigger further selling !
The only SILVER LINING seems to be the low volumes with which the fall is being witnessed. We only hope that on break down, volumes don't increase !
Happy (?) trading !!!!
CA Rajiv D Khatlawala
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