In the absence of major market moving news, there will be blips of sharp one way moves. The finance minister has asked the tax authorities to unearth “black money” in India is a way to meeting the revenue targets of the government. The intent of the government is to catch tax evaders earliest and impose necessary fines and other punitive measures. This can create fear among the tax evaders and the end will be voluntary compliance of tax laws resulting in higher revenues.
The scope for increasing personal tax revenues in India is very huge. Digitization is reducing the numbers of sources through which “black money” can be kept. In a few years’ time in India, it will be virtually evade tax. The government’s direct tax revenues will only rise in the coming years. As far as indirect taxes are concerned, there will be continuous evasion due to differential tax rates in various states. Once the uniform goods and service taxes (GST) is implemented, indirect tax evasion will be very few. But GST implementation in India is like a mirage in a desert.
Trader sentiment in US dollar-Indian Rupee (usd/inr) is to sell on every rise. I remain bearish on euro/usd. However buy stop losses will be triggered only if euro/usd falls below 1.3460. July and August are summer trading months for currency traders. Trading volumes are below normal in this period. From September I expect another euro bashing.
Usd/inr July 2014: It will break free from 59.86-60.32-60.76 range this week and form a new range. Jobbers watch 60.32 and trade accordingly.
Euro/inr July 2014: Initial support is at 81.40 and there will be another wave of selling only below 81.40 to 81.15-80.78. Overall till July futures close, there will be sellers on rise as long as euro/inr does not break 83.00.
Gbp/Inr July 2014: Cable needs to trade over 102.88 to rise to 103.20-103.76. There will be sellers only below 102.88 to 102.66-102.48.
Jpy/Inr July 2014: It needs to trade over 59.29 to be in intraday bullish zone and rise to 59.84-60.10. Key weekly support is at 59.29. Jobbers watch 59.49 all the time.
The scope for increasing personal tax revenues in India is very huge. Digitization is reducing the numbers of sources through which “black money” can be kept. In a few years’ time in India, it will be virtually evade tax. The government’s direct tax revenues will only rise in the coming years. As far as indirect taxes are concerned, there will be continuous evasion due to differential tax rates in various states. Once the uniform goods and service taxes (GST) is implemented, indirect tax evasion will be very few. But GST implementation in India is like a mirage in a desert.
Trader sentiment in US dollar-Indian Rupee (usd/inr) is to sell on every rise. I remain bearish on euro/usd. However buy stop losses will be triggered only if euro/usd falls below 1.3460. July and August are summer trading months for currency traders. Trading volumes are below normal in this period. From September I expect another euro bashing.
Usd/inr July 2014: It will break free from 59.86-60.32-60.76 range this week and form a new range. Jobbers watch 60.32 and trade accordingly.
Euro/inr July 2014: Initial support is at 81.40 and there will be another wave of selling only below 81.40 to 81.15-80.78. Overall till July futures close, there will be sellers on rise as long as euro/inr does not break 83.00.
Gbp/Inr July 2014: Cable needs to trade over 102.88 to rise to 103.20-103.76. There will be sellers only below 102.88 to 102.66-102.48.
Jpy/Inr July 2014: It needs to trade over 59.29 to be in intraday bullish zone and rise to 59.84-60.10. Key weekly support is at 59.29. Jobbers watch 59.49 all the time.
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