Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 7 ahead RBI monetary policy today | Stock Market News

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on cautious note on Friday amid mixed global cues and ahead of the Reserve Bank of India’s (RBI) monetary policy decision.

The trends on Gift Nifty indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 23,715 level, a premium of nearly 25 points from the Nifty futures’ previous close.

Traders will focus on the Reserve Bank of India’s (RBI) monetary policy decision later today. Economists widely expect the RBI’s Monetary Policy Committee (MPC) to announce a repo rate cut of 25 basis points (bps) to 6.25%.

On Thursday, the domestic equity market indices ended lower, with the Nifty 50 holding above 23,600 level.

The Sensex declined 213.12 points, or 0.27%, to close at 78,058.16, while the Nifty 50 settled 92.95 points, or 0.39%, lower at 23,603.35.

Nifty 50 index formed a strong bearish candle on the daily chart, indicating that the index is struggling to sustain higher levels.

“This marks the second consecutive session of profit booking, with the index forming another small bearish candle on the daily chart. Prices have now approached a critical resistance zone, defined by the upper boundary of a falling wedge pattern and the 89 DEMA,” said Rajesh Bhosale, Technical Analyst, Angel One Ltd – Angel One.

According to him, traders seem to have opted for a cautious approach, preferring to book some long positions around this key level ahead of the RBI policy decision and the Delhi state election results, both of which could induce volatility.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Nifty Open Interest (OI) data indicates the highest OI on the call side at the 23,700 and 23,800 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,500 strike price, marking these as key support levels, said Hardik Matalia, Derivative analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 ended with a cut of 0.39%, closing just above the 23,600 mark on February 6, ahead of the RBI policy announcement today.

“Nifty 50 index witnessed muted action with limited optimism ahead of the key event — the RBI Monetary Policy today. The primary trend remains positive on the daily and hourly charts, with Nifty 50 holding above short-term moving averages. However the index remains within a defined range, with the 38.2% Fibonacci retracement level at 23,550, and the 50% retracement level at 23,800,” said Om Mehra, Technical Analyst, SAMCO Securities.

The daily RSI hovers near the 55 mark, indicating a neutral-to-positive momentum. Nifty may continue its consolidation phase for a few more sessions while maintaining a positive outlook. The support is positioned at 23,470, he added.

According to Rajesh Bhosale, on the downside, the bullish gap near 23,400, aligning with the 20 DEMA, serves as a crucial support zone and this level is likely to hold unless any unfavorable developments from the key events fizzle out the recent momentum gained by the bulls.

“On the upside, resistance levels are spread out at 100-point intervals, with key hurdles at 23,800 (Wednesday’s high), 23,900 (89 DEMA), 24,000 (200 DSMA), and 24,250 (previous swing high). A strong buying trigger would be necessary to surpass these levels, and until then, traders should consider booking profits at regular intervals. Today’s session is expected to be crucial, with the 23,400 – 23,800 range being the key zone to watch, potentially setting the tone for the coming week,” Bhosale said.

Bank Nifty Prediction

Bank Nifty ended 0.08% higher at 50,382.10 on Thursday, forming a hammer candle on the daily chart.

“Bank Nifty index is holding above the 38.2% Fibonacci retracement level, placed at 50,100, while the 200 DMA, positioned around 51,000, acts as a crucial resistance. A breakout above this level could accelerate bullish momentum. While the support remains at 49,700,” said Om Mehra.

Ahead of the RBI Monetary Policy today, the Nifty PSU Bank Index ended in the red while the Nifty Private Bank Index closed higher, reflecting mixed sentiment.

“The trend remains neutral to positive, with some consolidation likely in the near term,” Mehra added.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.