Sensex, Nifty 50 May Open In Red Ahead Of RBI's Rates Decision, Key Inflation Data; 3 Stocks To Buy

Indian market is likely to open in red on Thursday tracking mixed global cues, while focus will be shifted on RBI's policy outcomes and key inflation data of both the country and the US. In the early deals, the SGX Nifty index traded in the red, signalling a sloppy opening in Sensex and Nifty, while Asian shares skidded tracking the bearish tone of Wall Street overnight. In the previous session, Sensex and Nifty 50 ended in the green, however, with a cautious mood.

Gift Nifty, formerly known as SGX Nifty, traded at 19,596.5, down by 15.5 points or 0.08% at 7.51 a.m. on Thursday. The index ranged between 19,650.5 to 19,592.0 levels after opening at 19,612.0.

RBI will declare the policy rates decision in the morning of Thursday after the market opening bell followed by a press conference of the monetary policy committee members. The majority of experts have predicted the policy repo rate to remain unchanged at 6.5%. However, RBI governor Shaktikanta Das' views on inflation and the economy outlook ahead will be keenly watched.

However, the Asian market is under pressure after selling on Wall Street. Hong Kong and South Korean shares dipped marginally, while a slight upside was seen in Japan's Nikkei 225 and Shanghai Composite Index. Australian shares traded flat.

Meanwhile, on Wednesday, domestic equities ended in green as investors await RBI's policy rates decision and crucial inflation data for both India and the US. Sensex ended at 65,995.81, up by 149.31 points or 0.23%, while Nifty 50 finished at 19,632.55, higher by 61.70 points or 0.32%. BSE Midcap stocks climbed by 119.93 points, while Smallcap index advanced by 201.40 points, outperforming the benchmarks. In terms of sectoral indices, consumer durables and metal index on BSE were top gainers with an upside of 515.12 points and 497.42 points respectively.

Meanwhile, foreign institutional investors (FIIs) halted their 9-consecutive days selling spree and emerged as net buyers with an inflow of Rs 644.11 crore in Indian stocks on Wednesday, on the contrary, domestic institutional investors (DIIs) turned net sellers with an outflow of Rs 597.88 crore.

Wall Street slipped on Wednesday dragged by tech-led selloff as investors brace for US July inflation data scheduled on Thursday which is expected to give further clarity on the US Federal Reserve's next monetary policy outcomes. Dow Jones Industrial Average dipped by 0.54%, S&P 500 index plunged by 0.70%, however, the tech-heavy Nasdaq was the top bear with a 1.17% downside.

Thursday's Trade Guide:

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher expects Nifty Spot Index support to be around 19500/19450, while resistance to be in the range of 19800/19850. Meanwhile, Bank Nifty spot index support is likely in the range of 44500/44450, and resistance at 45300/45350.

Parekh has recommended 'Buy' on three stocks for Thursday's trade. These are:

- Buy Hindustan Aeronautics at Rs 3824 with a stoploss of Rs 3770 for target price of Rs 3950.

- Buy Tata Motors at Rs 622.50 with a stoploss of Rs 613 for a target price of Rs 647

- Buy RITES at Rs 470.50 with a stop loss of Rs 463 for a target price of Rs 488

Further, Ajit Mishra, SVP of Technical Research, Religare Broking said, "Bulls are trying hard to reclaim some strength but it would be tough without the participation from the banking majors. Besides, resilience on the global front, especially in the US, would play a critical role ahead. Meanwhile, traders should continue with a stock-specific trading approach and focus on sectors that are attracting buying interest."

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.