Amara Raja (Amaron) is still in range consolidation but decent place to accumulate still.

Once it breaks 50 EMA it will have a All EMA Break out Setup

There is a possibility of Ship Building Stocks Forming a new Base and Piercing Reversal.

Im Looking at COCHINSHIP, MAZDOCK and GRSE

Here are the charts

Cochin Ship

Needs All EMA Break out in Weekly.

Similar All EMA Resistance in weekly in Mazdock, Break out of that would be optimal.

GRSE

Forming new base, Reversal would be at 10 EMA Weekly Break out confirmation

ACI Setting up perfectly, lower levels were perfect to accumulate but a nice opportune Breakout is appearing this week. Lets see hot the closing goes.

OBV Is fantastic! Seems Ready to blast.

Volume Missing in current week.

Clear Break out above 700.

Alkyl Amines

Setting up a possible Cup and Handle Setup.

CNH Break out above 2500

TBOTEK

Super Candle formed this week, but if you see daily its because of a huge gap up and weekly move is already 21%, Expect retracement or even full gap filling. Set alert for 1490-1500 Range and lie in wait. If you get the dip no need to wait for weekly closing.

Thats it for now, will check more charts later and share.

Hope this was helpful.

Good morning 😁

Next Gen GST Reforms

This is tentatively great news. Many businesses will benefit from this and the consumer ofcourse will get the rolling down discount.

Lets hope for the best implimentation. If someone is doubtful, this is a definite reason to smile for the middle class specially. As it's a mostly straight reduction in GST.

BLUESTAR

Morning Breakfast

2nd Breakfast.

Done for the day mostly

I hope every one is now familiar with the Scalping Rules

There is a lot of GST news coming about cancellation of input credit tax. If that's true then this whole thing is one step forward 2 steps back.

We will need to wait for lots of clarification.

Which is also why as of now CAs are silent about the whole thing.

What is input tax credit?

Lets say I'm a business owner

I buy raw material worth ₹1,00,000 + 18% GST = 1,18,000 I pay to my vendor. Here I've paid 18,000 GST against my purchase.

I process this raw material and make products and sell them for 2,00,000 + 18% GST = 2,36,000

Here I get paid 36000 GST from my customer to whom I sell my products for 2,00,000+36,000 GST.

This 36,000 is now my GST liability. Which means I owe this 36,000 to the govt.

BUT if you remember I already paid 18,000 GST to my vendor of raw materials, this 18,000 is my input credit. That this much I've already paid. And hence it's subtracted from my GST Payable.

36000 liability - 18000 already paid

= I've to pay 18000 only.

Now let's see some examples of 18 to 5% sales GST
Considering Raw material GST % remains unchanged from 18% ( which will remain the case mostly)

Raw material 1,00,000 + 18% = 1,18,000

Product sold 2,00,000 +5% = 2,10,000

Tax liability 10,000 - input tax credit 18,000

= - 8000

In this scenario.

Customer gets full benefit

Instead of 2,36,000 they had to pay 2,10,000

Customer gets full tax benefit

And manufacturer had a negative liability as he paid 18,000 GST on purchase of raw material BUT 5% on sales. So he will get refund of 8000/-

Now comes the dark example.

Same example but input credit tax isn't allowed.

Raw material 1,00,000 + 18% = 1,18,000

Product sold 2,00,000 +5% = 2,10,000

Tax liability 10,000 - input tax credit 0

= 10,000

But 18,000 GST was also paid on purchase. Which now isnt allowed to be adjusted.

So total GST Paid by manufacturer is Rs. 28,000

In this scenario.

Customer gets full benefit

Instead of 2,36,000 they had to pay 2,10,000

Customer gets full tax benefit

But manufacturer had to pay 28000 GST instead of 18000 in current system with 18% gst instead of 5%

Their margins are now affected. And why would any business owner pass on any benefit to customer if their own profit is reduced instead of increased?

So what will happen?

The manufacturer will take the input credit from the buyer.

Sales price becomes 2,10,000 + 18000 that he would have gotten input credit

Total becomes 2,28,000

So what's the difference?

Original price 2,36,000 becomes 2,28,000

The little bit of discount goes to customer.

Whats the change in govts earning?

Earlier they were getting 36000 GST. and now they are getting 28000 GST

Manufacturer - no change.

Customer - small discount