Nifty Future and Option Analysis for 7 March

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NIFTY FUTURE-CMP(5535.95) is currently in BULL trend . Yesterday the trend was STRONG BEAR In Mar series Nifty future added 9.09 lakh position in Open Interest and this accounts to 4.00286280555 % of Total Open Interest in Mar series.The Nifty Mar series is trading at 2.8 Rs discount to Underlying . In derivative cumulatively for all series contract Nifty future net added 7.04 lakh position in open interest and this accounts to 2.64 % of Total Open Interest in all series and cumulatively trading in average premium of 14.17 Rs to Underlying. The open interest is also increasing with trend

NIFTY FUTURE LEVEL-Mar/07/2011

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R3	R2	R1	PIVOT	S1	S2	S3
5630.31	5587.51	5561.73	5555.1	5510.17	5484.39	5441.59

BUDGET 2011 HIGHLIGHTS: TAX IMPACTS & KEY ISSUES

IMPACT OF BUDGET ON STOCK MARKET

• Corporate tax surcharge reduced from 7.5% to 5%. Minimum alternate tax rate up from 18% to 18.5%.
• IT exemption for taxpayers raised from Rs 1.6 lakh to Rs 1.8 lakh. Tax relief is about Rs 2,000 across-the-board.
• Senior citizens to get higher IT deduction limit of Rs 2.5 lakh. Entitlement age reduced to 60 from current 65
• New category of senior citizens above 80 years to get higher IT deduction limit of Rs 5 lakh from this year
• Service tax levels and excise stay at 10%; Peak rate of customs duty remains unchanged
• Excise exemptions withdrawn on 130 items; to pay minimum excise of 1% from next year
• Foreign individual investors allowed to invest directly in mutual funds subject to KYC requirements
• Govt to allow issue of Rs 30,000 crore worth of tax-free bonds by infrastructure companies in 2011-12
• Tax deduction for investment in infrastructure bonds of Rs 20,000 extended for one more year
• Investment in fertiliser plants and machinery to be treated as infrastructure investment
• Fiscal deficit for 2010-11 seen at 5.1% against 5.5% budgeted; deficit for 2011-12 projected at 4.6% of GDP
• Government to introduce direct cash payments for those entitled to subsidies in kerosene, cooking gas and fertiliser by March, 2012.
• Government considering extension of nutrient-based subsidy for urea, the largest chunk of fertilisers used in agriculture
• National mission for electric and hybrid vehicles to be set up to create environment-friendly automobiles
• Priority sector home loans limit raised to Rs 25 lakh from Rs 20 lakh.
• Interest subvention on home loans up to Rs 15 lakh. Mortgage risk guarantee corporation to insure loans to the poor
• Public sector disinvestment target for 2011-12 is raised to Rs 40,000 crore
• Centre's net borrowing figure for 2011-12 fixed at Rs 3,43,000 crore; fiscal deficit figure at Rs 4,12,000 crore
• Cement excise duties will be shifted to valorem basis from specific duty now
• Loss on direct tax reliefs at Rs 11,500 crore; gain on indirect tax changes at Rs 11,300 crore
• FM says no need to remove stimulus package at this stage, but will withdraw excise exemptions