Benchmark indices started off flat on Wednesday morning as investors maintained caution ahead of the Reserve Bank of India’s monetary policy decision, with technology and FMCG stocks weighing on market sentiment.
The Sensex opened at 78,119.60, compared to its previous close of 78,058.16, and is currently trading at 78,050.94, down by 7.22 points or 0.01 per cent. Similarly, the Nifty opened at 23,603.35 against its previous close of 23,649.50, and is now at 23,601.70, losing 1.65 points or 0.01 per cent in early trade.
According to Mr. Vikas Jain, Head of Research at Reliance Securities, “The RBI’s outlook on GDP growth, inflation forecast, and focus on bank credit growth and liquidity in the banking system will be closely watched.” The market is anticipating a potential 25 basis point rate cut, which would be the first reduction since May 2020.
Bharti Airtel emerged as the top gainer on the NSE, surging 4.38 per cent following its in-line quarterly results. Metal stocks showed strength with JSW Steel and Tata Steel advancing 1.90 per cent and 1.89 per cent respectively. UltraTech Cement gained 1.33 per cent, while Britannia rose 1.27 per cent after reporting better-than-expected Q3 results.
On the other hand, ITC led the losses, dropping 1.58 per cent after posting lower-than-expected Q3 results. Technology stocks faced selling pressure with HCL Tech, Wipro, and TCS declining by 1.17 per cent, 1.13 per cent, and 1.12 per cent respectively. State Bank of India fell 1.10 per cent despite robust asset quality in its recent results.
Ameya Ranadive, Senior Technical Analyst at StoxBox, noted, “The market is expected to consolidate with potential bullish momentum, provided support near 23,430 holds on a closing basis.”
According to Sameet Chavan, Head Research at Angel One, “Traders should consider booking profits at regular intervals with resistance levels spread at 100-point intervals – key hurdles at 23800, 23900 (89 DEMA), 24000 (200 DSMA), and 24250. The 23400–23800 range remains crucial for setting the tone for the coming week.”
Choice Broking’s Derivative analyst Hardik Matalia provided specific support and resistance levels: “Nifty can find support at 23,550 followed by 23,500 and 23,400, while 23,700 can be an immediate resistance, followed by 23,800 and 24,000. For Bank Nifty, support levels are at 50,200, 50,000 and 49,700, with resistance at 50,500, 50,700 and 51,000.”
In the commodities segment, Rahul Kalantri, VP Commodities at Mehta Equities, noted that gold and silver showed routine profit taking ahead of U.S. monthly job reports. He mentioned, “Gold has support at $2845-2824 while resistance at $2887-2902. In INR terms, gold has support at Rs 84,170-83,860, while resistance at Rs 84,880-85,240,” highlighting that the weaker rupee is supporting precious metal prices in domestic markets.
Foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 3,549.95 crore, while domestic institutional investors (DIIs) bought shares worth Rs 2,721.66 crore in the previous session.
The broader market sentiment was affected by global factors, including President Trump’s decision to freeze USAID funds to India, potentially impacting various sectors such as agritech, pharma, and edtech. According to Ms. VLA Ambala, Co-Founder, Stock Market Today, “The latest move could affect support programs worth USD 140 million across segments like sanitation, healthcare, agriculture, and education.”
In commodities, gold traded steady near $2,860 an ounce, while Brent crude declined 1 per cent to $74 per barrel amid concerns over global demand and rising U.S. oil inventory.
Key companies scheduled to announce their quarterly results today include Life Insurance Corporation of India, Mazagon Dock, Oil India, Alkem Lab, and Fortis Healthcare, which could influence market movement during the session.
Published on February 7, 2025
