The Indian government reduced taxes on a variety of goods under the Goods and Services Tax (GST) reform, aiming to stimulate consumption ahead of the holiday season and mitigate the economic impact of high US tariffs. Indian stocks closed higher on Thursday. This is consistent with my previous analysis and judgment on tariffs and the stock market: With tariffs eased and investor confidence boosted; the stock market will naturally rise.
Technically, the Nifty index currently faces resistance at 25,000 points, while support remains at the recent range-bound bottom of 24,500-24,400 points. Yesterday, the Nifty index faced resistance at 25,000 points. When the stock market rose to this resistance level, heavy selling pressure prevented it from breaking through, triggering a gradual decline in late trading, which coincided with a retest of the gap support level. The key to today's direction will depend on how the market performs. If it fills yesterday's gap and stabilizes, a further rebound will likely occur at the gap support level. If the price continues to fall after the down gap, it will most likely return to the bottom support level of oscillation around 24500-24400 points.
Regarding trading strategies, if the Nifty index stabilizes at the bottom support level of the gap, hold on to your holdings until it rebounds to around 25,000 points. Profitable stocks should still be sold at high levels to lock in profits and avoid losses. If the Nifty index declines today and the market shows signs of stabilizing at the range-bound support level of 24,500-24,400 points, use this support level as an entry point to buy new high-quality stocks and wait for a rebound to realize short-term gains. We will share new strong stocks next Monday, so stay tuned for the latest strong stock news from this group!
Regarding stocks, this week's SYRMA investment has seen a profit increase of over 18%, and RATEGAIN has seen a profit increase of over 10%. You can continue to expand your gains, aiming for a short-term target of 20%-30%.
CGPOWER and DRREDDY are still trading at cost. If you haven't already invested, you can still choose to buy into this portfolio.