20 Jun 2024 Govt. planning to raise taxes, help retail traders??
BankNifty Stance Bullish ⬆️
Unlike Nifty, banknifty had more stability today but yesterday's outlier performance had its implications today. The premiums of CALL options were too pricey, which then normalized as the day progressed. Do not really know how the banks have so much of a firepower to keep going up, we are at the top and the banks are hungry for more.
From a macro perspective, we have two news speculations/rumors going around
I see the Govt. being opportunistic and raising the taxes by sugar coating the narratives. Too much of taxes will spoil this industry and the main thing that got the current government re-elected was the perception of the Indian economy through the lens of stock markets.
The stance on BN continues to be bullish, we are all actively watching the space to know when we run out of steam - till then the dance should not stop.
Unlike Nifty, banknifty had more stability today but yesterday's outlier performance had its implications today. The premiums of CALL options were too pricey, which then normalized as the day progressed. Do not really know how the banks have so much of a firepower to keep going up, we are at the top and the banks are hungry for more.
From a macro perspective, we have two news speculations/rumors going around
- Govt. of India is planning to increase taxation to prevent HFTs and Algo firms from exploiting the retail traders.
- Govt. of India is planning to increase taxes on FnO, and make it a speculative model (similar to lottery and crypto) to discourage retail traders from losing.
I see the Govt. being opportunistic and raising the taxes by sugar coating the narratives. Too much of taxes will spoil this industry and the main thing that got the current government re-elected was the perception of the Indian economy through the lens of stock markets.
The stance on BN continues to be bullish, we are all actively watching the space to know when we run out of steam - till then the dance should not stop.