The SENSEX has successfully broken its downtrend and is now consolidating after a healthy retest, indicating strength and stability at current levels.
Key Macro Triggers
📊 Inflation Cooling:
* July CPI fell sharply to1.55%, the lowest since June 2017😮
* Food Inflation came in at -1.76%, down from -1.06% in June, signaling strong disinflationary trends.
This cooling inflation provides the RBI more room for policy support, boosting overall market sentiment.
⚖️ Policy Catalyst – GST Reforms by Diwali 2025:
In his Independence Day speech, PM Modi highlighted “Next-Gen GST Reforms,” which could act as a major structural trigger for the markets:
* 12% GST slab ➝ May shift to 5% 💡
* 28% GST slab ➝ May shift to 18% 📉
* New 40% slab** for sin goods (tobacco, beer, etc.)
These reforms, if implemented, would lower tax burdens, increase consumption, and improve corporate profitability**, setting the stage for a sustained equity rally.
Trade Setup – SENSEX
With strong macro tailwinds and technical breakout confirmation, we can look for long trades in the index:
* Entry: Current consolidation zone
* Stop Loss: Below recent retest level
* Target 1: 81,500
* Target 2: 82,600
⚠️ Risk Note:
While domestic triggers look favorable, Trump’s additional tariff policies could weigh on global risk sentiment and temporarily hinder momentum in Indian equities.
Key Macro Triggers
📊 Inflation Cooling:
* July CPI fell sharply to1.55%, the lowest since June 2017😮
* Food Inflation came in at -1.76%, down from -1.06% in June, signaling strong disinflationary trends.
This cooling inflation provides the RBI more room for policy support, boosting overall market sentiment.
⚖️ Policy Catalyst – GST Reforms by Diwali 2025:
In his Independence Day speech, PM Modi highlighted “Next-Gen GST Reforms,” which could act as a major structural trigger for the markets:
* 12% GST slab ➝ May shift to 5% 💡
* 28% GST slab ➝ May shift to 18% 📉
* New 40% slab** for sin goods (tobacco, beer, etc.)
These reforms, if implemented, would lower tax burdens, increase consumption, and improve corporate profitability**, setting the stage for a sustained equity rally.
Trade Setup – SENSEX
With strong macro tailwinds and technical breakout confirmation, we can look for long trades in the index:
* Entry: Current consolidation zone
* Stop Loss: Below recent retest level
* Target 1: 81,500
* Target 2: 82,600
⚠️ Risk Note:
While domestic triggers look favorable, Trump’s additional tariff policies could weigh on global risk sentiment and temporarily hinder momentum in Indian equities.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.