Tue Dec 03 04:52:30 UTC 2024: ## Market Shows Resilience Despite Looming GST Uncertainty
**Mumbai, December 3, 2024** – Despite potential negative news on the horizon, India’s stock market displayed remarkable resilience yesterday, according to Anuj Singhal, Managing Editor of CNBC-Awaaz. Following an initial dip on bad news, the market rallied strongly, closing at its intraday high and forming a higher low, a positive technical indicator. Singhal noted the market’s unwillingness to react negatively to bad news, highlighting robust market breadth with renewed buying interest in mid-cap and small-cap stocks.
However, a potential increase in GST rates, particularly on ITC products (which holds a 4% weightage in Nifty), poses a significant threat. Singhal warned that a 35% tax increase would be highly regressive and negatively impact investor sentiment. Further increases on “sin goods” could exacerbate the situation. He suggested lowering taxes on other products below 28% would be a more favorable approach.
Singhal characterized the market’s underlying structure as improving, advising investors to buy on dips as long as the Nifty continues to form higher lows. He emphasized that a break below the previous day’s low would signal a change in market texture. He recommended long positions with strict stop-losses, noting the market is still net short, with major sectors ceasing their decline. His advice is to wait for the market’s reaction to the GST news during the first hour of trading today. If the market shows strength after that, long positions should be initiated.
Singhal provided key support and resistance levels for the Nifty and Bank Nifty indices, suggesting specific trading strategies with stop-loss orders to manage risk. He urged investors to exercise caution and seek professional advice before making investment decisions. (Disclaimer: The views expressed are those of the expert and do not reflect the views of Moneycontrol.com. Consult a certified expert before making any investment decisions).
First Piper 