2 August 2016


Tug of war between bulls & bears. The market has been on a wobbly road, largely upward, as it awaited the GST since the beginning of the monsoon session. Today the Sensex ended with a loss of 21 points at 27982. The Sensex opened at 28069 touched an intra-day high of 28175 and low of 27944. The Nifty closed with a loss of 14 points at 8622. The Nifty opened at 8647 hitting a high of 8687 and low of 8611.  As market has been largely on a gaining spree for the last few weeks, chances are investors may have already priced in the GST Bill. We believe long-term bullishness in the market will remain intact and on GST transformation, market can move to a level beyond 8800.
The Goods and Services Tax (GST) Bill has finally entered the last mile with it slated to be taken up in Parliament on Wednesday. The Sensex and Nifty will hit fresh highs if the GST Bill sees the light of the day, the likelihood of which has strengthened with government including the demands of the states and opposition parties in the fresh Bill. The positive sentiment in the market has mostly been built on the hopes that GST will get a green signal. If GST becomes the reality, we see Nifty to extend its move and cross the next hurdle at 8800, and if it manages to cross the same, the possibility of the index going beyond the 8900 cannot be written off. If GST fails to become the law, the market will start looking at the domestic factor and will not move lower significantly.
Supports: 8600 and 8500
Resistances: 8700 and 8800

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