Equity benchmarks the Sensex and the Nifty gained in opening deals on February 8 ahead of the RBI monetary policy committee (MPC) meeting outcome. Investors will closely watch the first policy review of 2024 for cues to rate cut trajectory and improvements in liquidity, with the central bank expected to hold rates steady.
At 9.17 am, the Sensex was up 193.36 points or 0.27 percent at 72,345 and the Nifty was up 57.20 points or 0.26 percent at 21,988. About 1,875 shares advanced, 557 declined and 115 remained unchanged.
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Fundamental view
The market is expected to log gains in early trades as investors would take cues from a higher closing of US indices. Bargain-hunting and value-buying is likely as investors would be selective after the record rally in recent months, said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
"Interest-rate-sensitive stocks could be in the spotlight amid RBI's monetary policy announcement," he added.
Since banking stocks’ underperformance has been keeping markets range-bound, any rate-cut indication by the RBI can move shares of private lenders such as ICICI Bank or Axis Bank, which will bolster the overall sentiment, said Ajit Mishra, Senior Vice-President of Technical Research at Religare Broking.
Technical view
"The Nifty has been hitting the hurdle of the previous crucial opening downside gap at 21,970 levels in the last few sessions, but a decisive upside breakout above this gap resistance is missing so far,” Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
The short-term trend for the Nifty continues to be positive All eyes will on the outcome of the RBI policy, he said.
There is a higher possibility of an upside breakout of 21,950-22,000 mark in the short term. Immediate support is at 21,750, he added.
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The Bank Nifty index is seeing an intense battle between bulls and bears and a decisive move is anticipated soon, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.
The lower-end support is at 45,600-45,500 and a conclusive break below this on a closing basis may trigger a sharp correction.
A break above 46,200 can lead to substantial short-covering moves, propelling the index towards the 46,500, he said.
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