# Nifty starts the day on a positive footing but the early gains vanish as traders digest the GST cuts.

Nifty (-18, 24718)
Sensex (-88, 80630)
Bank Nifty (-155, 53925)

# The trading theme revolves around rationalisation of the Goods and Services Tax (GST) structure done by the GST Council on September 3.

# The big question: Did the hype over big GST cuts fizzle out?

Honestly speaking, the adage "buy the rumour, sell the news" was into play in yesterday’s trade.

Our call of the day which suggests the ‘Next-Gen GST Reforms’ should strengthen the case for a consumption-led recovery, with auto and consumption expected to benefit the most. But having said that, the broader and macro-outlook still is vulnerable to global macro uncertainties – especially on Trump's US tariff of 50% on India and most importantly, the persistent FII’s outflows.

# We still suspect, a quieter but powerful bullish consolidation could be the preferred theme at Dalal Street

Confirmation of strength only if Nifty closes above its biggest hurdles at 25155 mark.

Until Nifty 25155 mark is a hurdle, expect volatility, volatility and volatility to the preferred theme at Dalal street.

# Bottom-line: Nifty’s bull case is likely to get louder ONLY above the 25155 mark.

# Meanwhile, the spotlight will also be on the US jobs data (Friday, September 5th) amid worries about labour market health.

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This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments.