Analysts caution, however, that FIIs remain net sellers, making Nifty’s sustainability above 25,000 crucial.
Indian equity markets surged in opening trade with the Nifty index testing 25,000, spurred by GST reform announcements by Prime Minister Narendra Modi on Independence Day, supported by a rally in auto and consumer durable goods.
Taxes are likely to be streamlined into two rates — 5% and 18%. Nearly all items will reportedly move from the 12% slab (99%) to 5%, while 90% of goods and services from the 28% bracket may move to 18%, with no additional cess applied.
At 09:45 a.m. IST, the Nifty 50 traded 369 points higher at 25,000, while the Sensex surged 1,129 points at 81,727. Broader markets mirrored the optimism, with the Nifty Midcap index rising 1.3% and the Smallcap index gaining nearly 1%.
However, the retail sentiment on Stocktwits for Nifty has moved from‘bullish’ to ‘neutral’ at market open.
Stock Watch
Sectorally, all sectors traded in the green with 4% rally in the auto index and 3% gains in consumer durables
Auto stocks surged on hopes of a lower GST rate revision by Diwali. Hero Motocorp and Maruti rallied 7%, Ashok Leyland and TVS Motors rose 6%.
Ola Electric gained 3% following its new electric scooter launch over the weekend.
Air conditioner (AC) stocks too saw a surge on the back of this optimism. Voltas, PG Electroplast surged 7%, while Amber rose 6%. The cement sector is the other potential beneficiary of GST revisions, which saw stocks such as ACC, Ambuja Cements, and Dalmia Bharat rally between 2% and 4%.
Steel stocks shone with Tata Steel, SAIl, Hindalco rising over 1%. This comes after the Directorate General of Trade Remedies (DGTR) recommended the imposition of safeguard duties for three years on imports of some flat steel products.
KEC International shares rose 6% on securing fresh orders worth ₹1,402 crore across businesses.
JK Cement gained 4% driven by its ₹4,805 crore greenfield expansion plans in Rajasthan and Punjab.
Some earnings movers on Monday include Zaggle, which surged 8%, Vodafone Idea gained 3% and Inox Wind rose 2%, while Kaveri Seeds fell 4%.
Markets: The Road Ahead
From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup.
Varunkumar Patel noted that Foreign Institutional Investors (FIIs) sold over ₹1,900 crore worth of equities in the cash market on August 14. In the derivatives space, they trimmed some index shorts, but overall positioning still leans bearish. On the technical front, he noted that the Nifty holding 24,600 is critical, and that sustaining above 24,800–24,900 remains tough unless FIIs cover significant portions of their shorts. Patel advised traders to use rallies for selective opportunities, keep strict stop-losses, and avoid chasing momentum until FIIs turn net buyers or shorts are meaningfully covered.
Prabhat Mittal identified Nifty support at 24,600 with resistance at 24,956 and 25,246. For the Bank Nifty, he sees support at 55,300 and resistance at 56,000 and 56,500.
A&Y Market Research identified intraday Nifty resistance between 24,738 – 24,800, and support at 24,461 – 24,490. For Bank Nifty, they peg resistance at 55,443 – 55,557 and support at 55,055 – 55,168.
Global Cues
Globally, Asian markets traded mixed, while crude oil prices rose ahead of the meeting between US President Donald Trump and Ukrainian Zelenskyy in Washington, along with other EU leaders. This comes after Trump and Russian President Putin’s meeting over the weekend failed to reach an agreement on resolving the Ukraine conflict.
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