Nifty Eyes 25,000 As SEBI Analysts See Sentiment Boost From GST Rate Cuts FMCG, Auto Stocks In Focus

Indian equity markets ended higher on Tuesday and a landmark decision by the GST Council late last evening is expected to boost market sentiment. The GIFT Nifty indicates a gap-up start on Dalal Street for Wednesday.

Ushering in a new age of indirect tax reforms, the GST Council has abolished the 12% and 28% tax slabs. Moving forward, only 5% and 18% GST rates will apply across most goods and services, along with a 40% tax on 'sin' goods. This simplification is aimed at boosting consumption and easing financial pressure on households. 

SEBI-registered analysts have shared the trade setup for September 4 on Stocktwits.

Pradeep Carpenter said that the simplified GST structure is designed to spur consumption, particularly ahead of the festive season. Broader indices could receive a sentiment boost from increased consumer demand and simplified compliance. 

Watch out for stocks in FMCG, consumer durables, retail, and auto sectors that are likely to benefit from improved affordability and a stronger sales outlook. Insurance companies may face near-term weakness.

Sameer Pande added that the Nifty is expected to open with a gap-up around the 24,950-25,000 resistance zone following the GST rate revision. If it crosses 25,000, we may see it test the levels of 25,200-25,350 soon. He pegged a strong demand zone at 24,800-24,750.

Prabhat Mittal identified Nifty support at 24,580 and resistance at 25,020. For the Bank Nifty, he sees support at 53,700, with resistance at 54,700.

A & Y Market Research pegged intraday Nifty resistance at 24,738 - 24800, with support at 24,461 - 24,490. For Bank Nifty, they identified resistance at 54,177 - 54,248, and support at 53,495 - 53,660.

Bharat Sharma of Stockace Financial Services sees a better probability of the Nifty index breaching the 20-50-day Exponential Moving Average (EMA) at 24,800. Beyond that, the index could approach 25,000. On the upside, he sees resistance at 24,800, with 24,400 acting as a support. 

For intraday trade, Sharma identified immediate resistance at 24,760, followed by 24,800, 24,840, 24,875, 24,920, and higher till 25,000. On the downside, immediate support is seen at 24,680, withthe  following supports at 24,640-24,600-24,550-24,520. If the Nifty index falls below 24,500, there will be significant weakness in the markets again.

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