Lower taxes, higher shares
Sensex’s actions have recovered well thanks to the recent surprise drop in corporate taxes from 30% to 22%. The Bombay Stock Exchange had, on the other hand, celebrated this news with a 5.3% increase, the strongest one-day advance in 10 years. Over the last sliding month, Sensex grew by 2.9% overall, accumulating 7% over 2019.
Among the winning components within the index are Asia Paints (+17.2%), the number one in Asia for paint manufacturing and marketing, which is characterized by steady growth each year. On the other hand, nothing is going well for Yes Bank, which lost another 42% during the same reference period, in an already catastrophic course (-78% over the current financial year), due in part to the bankruptcy of Jet Airways leading to an irrecoverable credit crunch.
Graphically, on a daily basis, prices suddenly resisted contact with 36,100 points to reach the 39,100-point resistance. From this rapid movement, the consolidation phase develops into a pullback on the relevant line of 37 530 points. The next exit, either from the top or from the bottom, will give a more pronounced directional direction to aim in the case of an acceleration, the target of 40,200 points or in the scenario reverses the support to 36 100 points.