Indian stock market stayed higher for the fifth straight session on Wednesday, as expectations of a proposed cut in GST rates across key categories boosted hopes of a demand recovery in the economy, continuing to support the rally on Dalal Street even as the deadline for an additional 25% US tariff hike fast approaches.

The five-day rally also helped the Nifty 50 reclaim the psychological 25,000 mark, closing at 25,050, gaining 0.23% The index was last seen at this level on July 24, 2025. It first crossed the 25,000 mark in August 2024 and later scaled 26,000 to register an all-time high of 26,277.

The muted performance of India Inc. in the June quarter, which failed to justify expensive valuations, coupled with heavy selling by overseas investors, had earlier dragged the index lower.

Weakening trade relations with the US, after Washington imposed 50% tariffs on Indian goods, further pressured domestic equities. However, steady inflows from domestic institutional investors limited the downside and helped the index recover from a three-month low earlier this month.

Amid concerns that higher tariffs could hurt economic growth, the government's proposal to cut GST on major items lifted investor sentiment, triggering a fresh wave of buying, allowing the index to comfortably hold above all its key moving averages.

Nifty 50 likely to touch 25,500 if it surges past 25,250, say analysts

According to Rupak De, Senior Technical Analyst at LKP Securities, Nifty 50 witnessed a largely positive session, closing above the 25,000 mark. 

He noted that sentiment is likely to favour the bulls, as the index has sustained above the 21 EMA for the past three sessions, with put writers outnumbering call writers for the first time in several days. He expects the index to remain a "buy on dips" as long as it holds above 24,800, while resistance is seen at 25,250, above which gains could extend towards 25,500.

Echoing a positive outlook, Hardik Matalia, Derivative Analyst at Choice Equity Broking, pointed out that Nifty is now comfortably holding above all its key moving averages, reflecting a firm underlying trend.

On the downside, he highlighted immediate support at 25,000, followed by 24,800, while resistance lies at 25,100 and 25,200. On the derivatives front, he added that the highest Call Open Interest is concentrated at the 25,100 and 25,200 strikes, indicating key resistance zones, while the highest Put Open Interest is at 25,000 and 24,900, suggesting strong support levels.

This setup implies that the 25,000–25,100 range will be crucial for Nifty's near-term movement, with a breakout on either side likely to dictate the next directional trend.

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