On Monday, September 22, the Indian stock market is set for a cautious opening as investors are considering global and domestic triggers across sectors. Meanwhile, the US government's recently announced increase in H-1B visa fees has raised concerns among Indian IT majors. 

There is also optimism that the rollout of GST 2.0 will be beneficial for select consumption-driven and manufacturing sectors.

Weak Opening Signals from Gift Nifty

Gift Nifty was traded at about 25,320 levels, down about 80 points from the previous Nifty futures close, indicating a soft start for benchmark indices.  This comes after a weak close on Friday with the Sensex down 387.73 points to close at 82,626.23, and the Nifty 50 down 96.55 points to close at 25,327.05, impacted by profit-booking.

Analysts believe that despite a short-term cautious view, the overall market outlook remains bullish. Traders are advised to carry their buy-on-dips and sell-on-rally strategy in the short term.

Sensex Outlook

Technically, the Sensex continues to hold its uptrend on weekly charts. Immediate support is at the 82,200-82,300 levels. Staying above this level will be crucial to sustaining the positive momentum. 

On the upside, 83,100 to 83,200 remains a strong resistance zone. A break above 83,200 may allow for fresh upside towards 84,000-84,600, while a break of support may push the index back towards 82,000.

Nifty 50 View

Nifty 50 has recently formed a double-bottom pattern on daily charts, indicating underlying resilience. Key support is placed near 25,150-25,250, and a move below this could drag the index toward the 25,000-25,100 zone. 

The resistance is at 25,500-25,600 on the higher side. A sustained close above this level may trigger a rally towards 25,700-25,750.

Market analysts note that the Nifty is easily outside its 20-, 50-, and 200-day moving averages, continuing to support the bullish outlook.

Bank Nifty Trend

Bank Nifty closed the previous week at 55,458.85, a 0.48% decline. Although near-term weakness is evident, the index continues to remain in an uptrend, supported by key short-term averages.  

Support is seen in the 55,000-55,250 range, and resistance around 56,000-56,160. Unless the index decisively breaks below 54,500, analysts expect consolidation with a positive tilt.

Also Read: GST 2.0 Cuts Prices on Essentials: Are You Shopping Smart?

Sectoral Impact of GST 2.0

GST 2.0 reforms could affect multiple sectors. Lower tax rates in GST 2.0 may benefit several consumer goods companies (HUL, ITC), electronics companies (Voltas, Havells), and auto makers (Tata Motors, Maruti). 

Cement majors (UltraTech, JK Cement) and companies in the retail sector (Swiggy, Zomato, Delhivery) could see higher demand, while premium EV brands such as Tesla and Mercedes-Benz may face margin pressure due to higher GST rates.

Conclusion

Although global uncertainty arising from the increase in the H-1B fee may impact IT sector in the near term, domestic catalysts such as GST 2.0 have the potential to provide strong support for consumption-based and infrastructure stocks. Market is expected to remain range-bound for now, and traders should respect the key support and resistance zones.