Markets Opening Bell: Sensex, Nifty Likely To Open In Green Ahead Of RBI's 3-Day Policy Meet

Indian market is likely to open with a marginal upside on Monday ahead of the RBI's 3-day monetary policy meeting. In the previous session, Sensex and Nifty 50 gained by nearly a per cent driven by positive earnings reports which offset the impact of weak global cues.

The SGX Nifty, which is the futures contract of Nifty index traded on the Singapore exchange, traded at 19,588.5, up by 29 points or 0.15% at 6.50 am on Monday.

However, Asian stocks traded slightly lower after Wall Street tumbled due to a slowdown in the US labour market and sharp selling in heavyweight Apple shares on the back of disappointing earnings.

MSCI's Asia-Pacific shares outside Japan saw a fractional pullback after closing the last week's session with a 2.3% drop. Japan's Nikkei 225 dipped by 1.1% with an intraday low of 31,830.23, testing its July low.

Meanwhile, S&P 500 and Nasdaq futures traded with an upside of 0.3% and 0.4% in early trade on Monday.

Last week, on Friday, the blue-chop Nifty 50 surged by 135.35 points or 0.7% to end at 19,517. While the S&P BSE Sensex soared by 480.57 points or 0.74% to close at 65,721.25. BSE Midcap and Smallcap index jumped by 195.02 points and 229.17 points to finish at 30,162.66 and 35,070.65 respectively.

Meanwhile, foreign institutional investors (FIIs) sold Rs 556.32 crore in Indian stocks, on the contrary, domestic institutional investors (DIIs) are net buyers with an inflow of Rs 366.61 crore.

During the trading week that ended on August 4, 2023, Sensex dipped by 484.04 points or 0.73%, while Nifty 50 tumbled by 115.30 points or 0.59% -- making it the second consecutive bearish week. FPIs selling stood at Rs 2,034 crore in Indian equities from August 1st to 4th, after being net buyers to the tune of Rs 46,618 crore in July month.

Wall Street ended in the red on Friday with Dow Jones Industrial Average down by 150.27 points, S&P 500 index dipped by 23.86 points and the tech-heavy Nasdaq by 50.48 points. Apple shares dipped by nearly 5%, while Amazon shares skyrocketed by 8.3%.

For Monday's trade, Ajit Mishra, SVP - Technical Research, Religare Broking said, "Nifty has rebounded after testing the support at 19,300 but failed to reclaim the short-term moving average i.e. 20 EMA. We need sustainability above the same for further recovery else the decline would resume. Though we are seeing a dip in the global indices too, their trend hasn't reversed yet, which is offering some comfort. Amid mixed signals, we advise staying selective and keeping a check on position size."

While Rupak De, Senior Technical analyst at LKP Securities said, "On an immediate basis, 19,300 has acted as support. However, on the higher end, 19,566 is likely to act as a crucial resistance level. The sentiment is likely to remain weak as long as the Nifty remains below 19,566. However, a decisive move above 19,566 could take the index towards 19,700-19,750. On the other hand, a failure to move above 19,566 could trigger selling pressure."

Further, on Bank Nifty, Kunal Shah, Senior Technical and derivative analyst at LKP Securities said, "The bears demonstrated activity around the 45200 level. A conclusive break above this level, particularly on a closing basis, could initiate further upward movement, potentially targeting levels around 45800 or even 46000. On the downside, a support level can be identified at 45500. Should the index break below this support, the bears could regain control, potentially leading to more downward movements. In terms of the price range, the Bank Nifty index has been fluctuating within the broad range of 44500-45200. A breach on either side of this range could signal a shift towards trending movements."

RBI's 3-day policy meeting will begin on August 8 and the outcome will be announced on August 10. RBI is expected to keep the repo rate unchanged at 6.5% in this policy.

Disclaimer

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