Opening Bell: Sensex, Nifty 50 May Open In Green As RBI's Rates Decision Nears; Global Markets Fall

Indian market is likely to open in green on Wednesday as RBI's rates decision nears where another 'status quo' is expected, keeping the repo rate at 6.5%. In the early deals, SGX Nifty index traded on a positive note, while Asian shares skidded tracking the bearish tone of Wall Street overnight. In the previous session, Sensex and Nifty 50 ended in red amidst cautious betting on a global front.

Gifty Nifty index, which was formerly known as SGX Nifty, traded at 19,595.5, up by 35 points or 0.18% at 7.41 am on Monday. The index ranged between 19,613.5 to 19,571.5 levels after opening at 19,560.5.

RBI will announce August 2023 policy outcomes on Thursday.

However, Asian stocks broadly traded on a mixed note with Hang Seng and Shanghai Composite index emerging as top laggards.

Hong Kong shares dipped over 0.4%, while the Shanghai Composite index slipped 0.3%. Japan's Nikkei had a volatile movement, whereas ASX 200 traded flat. However, South Korea's KOSPI index climbed by over 1%, becoming the top performer.

Chinese shares are under pressure after the economy's trade data came in worse than expected, raising worries about the global economic outlook.

On Tuesday, Indian markets ended in red as investors turned cautious globally even amidst declining bond yields as they await the release of crucial economic data. Sensex ended at 65,846.50, down by 106.98 points or 0.16%, while Nifty 50 finished at 19,570.85 down by 26.45 points or 0.13%. BSE Midcap stocks climbed by 46.48 points, while Smallcap index picked up by 86.91 points. In terms of sectoral indices, consumer durables stocks were top gainers as the index surged by 299 points on BSE, while the metal stocks were worst hit with a 204-point drop.

Meanwhile, foreign institutional investors (FIIs) continued to be net sellers with an outflow of Rs 711.34 crore in Indian stocks, on the contrary, domestic institutional investors (DIIs) stayed as net buyers with an inflow of Rs 537.31 crore during the August 8th trade.

Wall Street erased its previous session's gains and dropped after concerns over banks and the economy escalated following a Moody's cut on credit ratings of some 10 small-to-mid-sized US banks. Also, the dollar index jumped against a basket of currencies. Investors will focus on July inflation data that is scheduled on Thursday. Dow Jones Industrial Average surged by 0.45%, S&P 500 index plunged by 0.42%, however, the tech-heavy Nasdaq was the top bear with a 0.8% downside.

Wednesday Trade Guide:

For Wednesday trade, Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects Nifty Spot Index to find support at 19450/19400, while resistance is seen at 19700/19750. Further, Bank Nifty Spot Index is expected to have support in the range of 44700/44650 and resistence is seen around 45400/45450.

Parekh has recommended three stocks to buy during Wednesday's trade.

- Tata Consumer Products: Buy at Rs 847.50 with stop loss of Rs 835 for target price of Rs 884.

- Bandhan Bank: Buy at Rs 233.50 with stop loss of Rs 230 for target price of Rs 244.

- Apar Industries: Buy at Rs 3911 with stop loss of Rs 3860 for a target price of Rs 4070.

On Nifty 50, Rupak De, Senior Technical analyst at LKP Securities said, the displayed volatility but managed to close above the significant 21EMA moving average and maintained support above 19500 points. A positive trend is anticipated as long as the index holds above 19500, with resistance at 19700 and potential for a rally towards 20000.

Meanwhile, on Bank Nifty, Kunal Shah, Senior Technical and derivative analyst at LKP Securities said, the index is currently experiencing a struggle between the bulls and bears, resulting in a consolidation phase. There is a visible support level at 44800, and if the index breaks below this level, it could trigger further downside movements towards 44600. On the upside, a resistance level is apparent at 45150. If the index successfully breaks above this resistance level, it may pave the way for a clearer upward move toward levels around 45400-45500.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns. in advises users to consult with certified experts before making any investment decision.