ALERT:Fall from 7700, Where Now?

7700 is a strong resistance for Nifty and a cross above this may take Nifty to near 8000. But Nifty has been unable to cross it till now and has fallen below its immediate support of 7640. If it remains below 7640 next week, it may fall further up to 7450-7300 zone. Below 7450, the momentum of nifty’s uptrend will slow down. At lower levels, 7300 is a strong support and it will be broken only if there is a very strong negative event.

Markets are suddenly faced with Geopolitical uncertainties and long positions have been unwound for the weekend. Monday markets will be crucial to test the above technical view and we therefore advise a wait & watch mode for Monday. For more news and updates visit:- http://www.rrfinance.com/Reserch/ResearchHome.aspx

India has ordered oil companies to provide $11.4 billion subsidy!

India has ordered oil companies to provide $11.4 billion subsidy for 2013/14 to help cover losses of state retailers that sell fuels at cheaper rates – a jump of 12 percent from the previous year, a source with knowledge of the matter said on Thursday.

U.S. Treasuries prices edged lower on Thursday after stronger economic data on U.S. existing home sales and factory activity lifted sentiment, while larger-than-expected weekly jobless claims failed to spur safe-haven bids.

Commodity Key Headlines

1) Three to Six Hurricanes Forecast for Atlantic Season.
2) Copper Set for 3rd Weekly Gain on Factory Data, Stockpiles.
3) Pengana Joins BT to Flag Roll Back of Mining’s Age of Austerity.
4) Empty Buses Show Defiance Trumps Hunger in Worst Platinum Strike.
5) Zimbabwe to Use Diamonds to Secure Loan: Letter to Miners.
6) Australia’s Pollution U-turn Threatening UN Climate Talks.
7) JBS $17 Billion Spree Set to Continue as CEO Seeks Growth.
8) WTI Oil Falls from One-Month High on U.S. Data.

Read full technical analysis report here:- http://www.rrfinance.com/Reserch/ResearchHome.aspx

RGESS Frequently Asked Questions(FAQs) – RR Finance

What is RGESS?

Rajiv Gandhi Equity Savings Scheme (RGESS), is a tax saving scheme announced in the Union Budget 2012-13 (para 35). The scheme is designed exclusively for the first time retail individual investors in securities market, whose gross total income for the year is less than or equal to Rs. 10 lakh. The investor would get under Section 80 CCG of the Income Tax Act, a 50% deduction of the amount so invested, upto a maximum investment of Rs. 50,000, from his/her taxable income for that year.

What is the objective of the Scheme?

As announced in the Union Budget 2012-13, the objective of the Scheme is to encourage the flow of savings and to improve the depth of domestic capital markets. This would help in promoting an equity culture’ in India. The Scheme aims at widening the retail investor base in the Indian securities markets and also furthers the goal of financial stability and financial inclusion.

What is the legal provision for RGESS?

A new section 80 CCG under the Income tax Act, 1961 on ‘Deduction in respect of investment under an equity savings scheme’ was introduced, vide Finance Act 2012, to give tax benefits to ‘New Retail Investors’ who invest up to Rs.50,000 in ‘Eligible Securities’ and whose gross total annual income is less than or equal to Rs.10 Lakhs. The details of the RGESS Scheme were notified on 23 November 2012(Section No. 2777(E); Notification No. 51) and vide subsequent corrigendum dated 5 December 2012(Section No. 2835(E); Notification No. 53) by Department of Revenue. The operational guidelines were issued by SEBI on 6 December 2012.

Would first time investors not lose money in the equity market? Would it be too dangerous for them to invest in it?

The investors in the RGESS run the risk of losing money in the equity market, like any other investor in the securities market. The Scheme does not provide any guarantee of assured returns. Therefore, investors under RGESS are advised to do due diligence before making any investments in the equity market. However, while designing the Scheme, safeguards like, restricting the investments to select large cap stocks, lock-in period with enough flexibility to take benefits of the positive market movements etc. have been provided to protect the interests of the first time investors. To give the benefit of diversification and consequent risk minimization, investments into Exchange Traded Funds (ETFs) or Mutual funds, set up as per the criteria laid down in the scheme, are also allowed under the Scheme.

What are the benefits/ highlights of RGESS compared to other tax saving schemes?

The following are the benefits of RGESS:

• The allowed tax deduction u/s 80 CCG will be over and above the Rs. 1 Lakh limit permitted under Section 80C of the Income Tax (IT) Act, making it thus attractive for the middle class investors.

• Further, the Dividend income is also tax free.

• Investor is free to trade / churn the portfolio after the lock-in period in each of the years following the first year of investment, subject to certain conditions.

• Gains arising out of higher market valuation of RGESS eligible securities can be realized after a year viz: fixed lock – in period. Provisions exist to protect the investor from general declines in the market to a certain extent. This is in contrast to all other tax saving instruments.

• You can meet emergencies through pledging or even by selling off some stocks after the fixed lock in period.

• For investments upto Rs.50,000 in your sole RGESS demat account, if you opt for Basic Service Demat Account, annual maintenance charges for the demat account is zero and for investments upto Rs. 2 lakh, it is stipulated at Rs 100.

• The investments can be made in installments during the first financial year in which tax deduction is claimed.

Why RGESS Investments are limited to top 100 stocks?

The Scheme is designed for new investors who are venturing in the equity markets for the first time. The choice of investments have been restricted to the stocks included in BSE 100 or CNX 100 and to selected PSU stocks as they generally have shown relatively lower volatility, higher liquidity, and there is adequate reporting and analysis available in the market. The range of 100 stocks also provides enough scope for diversification of investments.

Read more FAQs about RGESS here: – http://www.rrfinance.com/PDF_Files/Faqs_2013-0024-Policy-FAQs-on-RGESS.pdf