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The market is expected to see renewed optimism in the week ahead, buoyed by PM Modi’s announcement of ‘big bang’ GST reforms, S&P’s rating upgrade, and easing global concerns.
Nifty Prediction Tomorrow.
Nifty Prediction For Tomorrow, August 18: The domestic equity market is expected to see renewed optimism in the week ahead, buoyed by Prime Minister Narendra Modi’s announcement of “big bang” GST reforms by Diwali, the recent S&P sovereign rating upgrade, and easing global concerns, according to analysts.
Trends in global equities and foreign investor activity will also guide sentiment.
On Friday, PM Modi announced sweeping reforms in the eight-year-old GST regime aimed at lowering prices of essential items and fixing compliance gaps, evasions, and litigation.
“The week ahead is likely to start on a cheerful note, as markets draw optimism from Prime Minister Narendra Modi’s Independence Day address. His statement on a potential GST rate reduction ahead of Diwali has the potential to significantly boost sentiment and lift equities out of the bear grip,” said Santosh Meena, Head of Research at Swastika Investmart.
S&P on Thursday upgraded India’s sovereign credit rating to ‘BBB’ with a stable outlook, the first upgrade in over 18 years, citing robust growth, fiscal discipline, and a supportive monetary policy stance.
“Another positive factor, which can influence FII behaviour, is the rating agency S&P raising India’s credit rating from BBB- to BBB,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Meanwhile, India welcomed the weekend summit between US President Donald Trump and Russian President Vladimir Putin in Alaska, though the talks ended without a ceasefire deal. Trump described the three-hour meeting as yielding “some great progress”, without giving details.
Market watchers said global factors will remain in play. “Going forward, the FII activity will be influenced by the action on the tariff front. Latest news of easing of tensions between the US and Russia and no further sanctions on Russia indicate that the secondary tariff of 25 per cent imposed on India is unlikely to come into effect after August 27th. This is a positive,” Vijayakumar added.
On the global front, investors will also track the US Fed’s meeting minutes and upcoming macro data for cues, according to Meena.
Saurabh Agarwal, Tax Partner at EY India, said the proposed GST reforms were “timely and strategic.” He noted: “These are not merely procedural changes; they are essential structural reforms designed to mitigate the risks arising from global trade tensions. In inverted duty structure, we are unlocking crucial working capital and making our exports more competitive on the global stage.”
Last week, the Sensex advanced 739.87 points (0.92%), while the Nifty rose 268 points (1.10%).
Technical Outlook On Nifty And Bank Nifty: Key Resistance & Support Levels
From a technical standpoint, the Nifty has established a strong base at the 24,350 level, forming a bullish engulfing candlestick pattern on the weekly chart. The immediate resistance lies at the 20- and 50-day moving averages (DMAs) clustered around 24,700-24,800. A decisive break above this level could trigger a short-covering rally towards 24,950, 25,080, and 25,225, said Swastika Investmart’s Santosh Meena.
Immediate support is at the 100-DMA of 24,575, with the crucial support level remaining at 24,350, he added.
“The Bank Nifty has also found a strong base at its 100-DMA of 55,000. The immediate hurdle for the banking index is the 20 and 50-DMAs around 55,800. A move above this level could propel it towards 56,400, 57,000, and 57,350. Fresh weakness is only anticipated if the index falls below the 55,000 mark,” Meena said.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
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