Nifty breaks key hurdle at 25,000: What the rally continue?
What's the story
The Nifty 50 index crossed the psychological barrier of 25,000 today, a level it last touched on July 25. The surge comes after a series of positive developments over the weekend and Prime Minister Narendra Modi's hint at possible cuts in Goods and Services Tax (GST). The Sensex also saw a massive jump of nearly 1,100 points to hit 81,678.77 during today's trading session.
Market impact
GST reforms and credit rating upgrade boost market sentiment
Prime Minister Modi's announcement of potential GST reforms has greatly improved market sentiment, especially in consumption-driven sectors. The proposed changes would cut taxes on essential goods such as cars and refrigerators from 28% to 18%, making them more affordable and potentially boosting consumer spending. Additionally, S&P Global upgraded India's credit rating for the first time since 2007 (BBB- to BBB), further bolstering investor confidence amid strong economic growth.
Global influence
Positive cues from global markets and falling oil prices
The Indian stock market rally was also aided by positive cues from Asian markets and Wall Street. The Indian rupee strengthened against the dollar, while oil prices fell—both of which are good for inflation. Major companies across sectors, including Maruti Suzuki and Hindustan Unilever, witnessed gains today. It was a rare day of broad-based success for the Indian markets.
Outlook
Nifty is trading close to its immediate support at 24,590
Choice Broking noted that the Nifty is trading close to its immediate support at 24,590. The brokerage said the index remains in a cautiously bearish to sideways trend, fluctuating between key averages. A decisive move above 24,800 could open the way for momentum buying toward 25,000 and beyond, while a drop below 24,300 may trigger renewed selling, pulling it toward 24,000-23,800. It advised traders to stay tactical, using a buy-on-dips and sell-on-rise strategy, while tracking the levels for clear signals.