The Indian stock market began flat on Wednesday, September 3rd, with the Sensex starting at 80296 with an upside gain of 0.17% and the Nifty opening over the 24,600 mark at 24,616.50, up 0.15%, weighed down by weak global cues and ahead of the crucial two-day GST Council meeting starting today.
Rising crude oil prices, which have hit a one-month high above $69 per barrel, along with continued selling by Foreign Institutional Investors (FIIs), could also negatively impact sentiment.
Investors are hopeful that the government will announce meaningful GST reforms to support the economy, especially after the US imposed a 50% tariff on Indian goods. In a positive development, Russia has increased its oil discount to India, now offering a $3.5 to $4 per barrel concession (up from $2.5), which may help ease the fiscal deficit.
Traders are expected to focus on sectors like auto, cement, FMCG, and steel, which are likely to benefit from potential GST reforms. Asian markets are trading mixed, while US and European markets closed with losses of up to 2% overnight, pressured by rising US bond yields ahead of the upcoming Fed policy meeting and a sharp decline in IT stocks.
Nifty Outlook Today
“Nifty immediate support is at 24442 then 24350 zones while resistance at 24750 then 24850 zones. Now it has to hold above 24442 zones for an up move towards 24750 then 24850 zones while supports can be seen at 24442 and 24350 zones,” commented Chandan Taparia of Motilal Oswal.
Bank Nifty Outlook Today
“Bank Nifty support is at 53500 then 53250 zones while resistance at 5400 then 54250 zones. Now till it holds below 54000 zones some weakness could be seen towards 53500 then 53250 levels while on the upside hurdle is seen at 54000 then 54250 zones,” commented Chandan Taparia.
Fundamental Stock Picks By Chandan Taparia of Motilal Oswal
Eternal
- Zomato has hiked its platform fees by 20% amid the surge in demand due to the onset of festive season. Has increased the fees to Rs 12 per order from Rs 10 earlier.
- Food Delivery: For FY26, management expects NOV growth to be above 15% YoY, although achieving over 20% growth appears unlikely. The company anticipates NOV growth to trend toward 20% in FY27.
- Blinkit: This was the first quarter where Blinkit’s NOV (INR 92bn) surpassed that of food delivery (INR89b) for a full quarter. The customer base is valueconscious rather than price-sensitive. The company focuses on speed, assortment, support, and price to drive customer satisfaction.
- For 2QFY26, we expect revenue/adj. EBITDA to grow 66%/15% YoY.
- We reiterate our BUY rating on the stock, supported by Eternal’s market leadership in both quick commerce and food delivery, and the long-term potential of Blinkit as a generational opportunity in retail, grocery, and e-commerce disruption.
Ashok Leyland
CMP Rs 130, TP Rs 141, 8% Upside, Buy
- Ashok Leylandplans to invest in development and manufacturing of next-generation batteries, for both automotive and non-automotive applications, including energy storage systems. It has entered into a long-term exclusive partnership with CALB Group, one of the foremost battery technology companies in China.
- AL will invest in battery localization in India. This will not only provide for Ashok Leyland & Switch’s own electric vehicle portfolio but will also cater to non-captive demand in the entire automotive sector as well as in energy storage sector.
- Over the years, AL has effectively reduced its business cyclicality by focusing on non-MHCV segments. Its continued emphasis on margin expansion is expected to support strong returns in the long run. Further, a net cash position will enable AL to invest in growth avenues in the coming years.
Technical Stock Picks By Chandan Taparia of Motilal Oswal
NMDC
CMP: Rs 72.80, SL: Rs 68.80, Target: Rs 79.15, Duration: 1 Week, Buy
- Symmetrical Triangle breakout on daily scale.
- Large bodied bullish candle.
- High volumes to confirm the breakout.
- RSI momentum indicator giving positive crossover.
- We recommend to buy the stock at CMP Rs 72.80 with a SL of Rs 68.80 and a TGT of Rs 79.15
Derivative View:
- Option Buying : Buy weekly Nifty 24500 Put if it holds below 24442 zones. Buy Bank Nifty 53000 Put till it holds below 54000 zones.
- Option Strategy : Nifty weekly Bear Put Spread (Buy 24500 PE and Sell 24300 PE) at net premium cost of 40-50 points. Bank Nifty Bear Put Spread (Buy 53500 PE and Sell 53000 PE) at net premium cost of 140-150 points.
- Option Writing : Sell weekly Nifty 23900 PE and 25100 CE with double SL. Sell Bank Nifty 51000 PE and 56200 CE with strict double SL.