Frontline indices Recorded Gains Of 1% Each, Nifty Hits 25,000 Intra-day. However, the 25,000 mark continued to remain a barrier for the Nifty, as the index closed over 100 points off the highs of the day.
On the daily chart, the Nifty closed near the day’s low, but the highlight was its breakout above the recent hurdle of 24,750, which capped the index for the past two weeks.Ultimately, the index closed the day higher by 246 points at 24,877.
Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 1.08% and the Nifty Smallcap 100 adding 1.38%.
Sector-wise, Nifty Auto led the charge with a stellar gain of 4.18%, followed by Nifty Realty, which rose 2.17%, and Nifty Metal, up 1.86%. FMCG and PSU Bank indices also traded positively, advancing 1.2% and 0.4%, respectively. On the downside, Nifty IT dipped 0.57%, while Energy, Pharma, and Media sectors remained largely flat.
Prime Minister Narendra Modi, during his address on Independence Day, promised next generation GST reforms by Diwali 2025, which would ease the tax burden on the masses and MSMEs.
The announcement has resulted in a sharp surge in India’s automobile stocks like Maruti Suzuki, Hero MotoCorp, and Ashok Leyland, on hopes of GST rate rationalisation.Hopes of a GST rate revision has also triggered a rally in India’s consumer durables stocks like Voltas, Blue Star, Amber Enterprises, all of which have moved as much as 10% higher. PG Electroplast, which recently cut its guidance for the full year, has also gained as much as 8%.
Shares of Vodafone Idea gained about 3% today, in response to their June quarter results that were reported after market hours on August 14. The quarter saw a marginal narrowing of the net loss on a sequential basis, but most of the other parameters remained constant.
What do the Nifty 50 charts indicate?
Nagaraj Shetti of HDFC Securities said that if Monday’s upside gap remains open for the next few sessions, then the said gap could be considered as a bullish breakaway gap, which is normally formed at the important bottom reversal. Hence the recent swing low of 24,337 of August 8 is likely to be a bottom for the Nifty in the near term. The next upside target to be watched at 25,250. Immediate support is placed at 24,700.
According to Rupak De of LKP Securities, the Nifty opened with a gap-up but faced initial resistance at 25,000, leading to an intraday decline due to profit booking at higher levels. The sentiment, however, remains positive, with the potential to revisit 25,000 in the coming days.
“Immediate support is placed at 24,800, below which the index may drift towards 24,500. On the higher side, a decisive move above 25,000 could trigger a larger rally in the market,” De added.
Rajesh Bhosale of Angel One said the broad-based buying, despite cooling off towards the close, suggests that the positive momentum is likely to continue, and hence, dips should be viewed as buying opportunities.
“In such scenario, the bullish gap around 24,800-24,700, aligned with the reclaimed moving averages, is likely to act as strong immediate support. On the upside, 25,000, coinciding with the 50% retracement of the recent fall from 25,670 to 24,344, remains the first key hurdle, followed by 25,150, which is the 61.8% retracement,” Bhosale said.
