Trade Setup Thursday: Key Factors To Drive Sensex, Nifty Today; 3 Stocks Recommended To BUY

Indian stock market will be trading with RBI's monetary policy outcomes in focus on Thursday. Majority of consensus is that RBI may hold rates for the sixth time in row, ending FY24 without any cuts or hikes. Apart from this, LIC is the big Q3 earnings to watch out.

Vinod Nair, Head of Research, Geojit Financial Services said, "The domestic market exhibited cautious range-bound movement, despite robust PMI data and favourable global cues ahead of RBI policy meet. While no change in stance is anticipated, the RBI's commentary on any hints regarding potential rate cuts and improvements in liquidity will be closely monitored."

The Indian stock market closed largely higher, with the Nifty managing to hold its ground at 21,900 despite bouts of volatility. Midcaps continued their stellar performance, with the Midcap Index hitting record highs, while the Sensex experienced a minor setback, falling 34 points to close at 72,152.

Day Trading Guide On Febuary 8:

Prashanth Tapse, Senior VP (Research), Mehta Equities said, While investors are bracing for a status-quo on the interest rate decision, what will be important to note is the tone of the announcement which would signal the central bank's stance on interest rate going ahead."

Further, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said, Overall market remained on the side-lines ahead of the RBI policy meeting outcome on Thursday. On the economic front, US Retail Sales data and China's CPI data will be released late today. Investors would continue to take cues from the earning season. Insurance giant LIC will announce results on Thursday where new business premium growth is expected to remain healthy."

To investors, Ajit Mishra, SVP - Technical Research, Religare Broking said, "We maintain our positive stance amid consolidation and suggest continuing with a "buy on dips" approach until Nifty holds 21,600. However, participation from the banking and financial majors would be critical for trend resumption. Apart from the domestic factors, we suggest keeping a close eye on global markets for cues."

Technical Outlook:

On Nifty, Rupak De, Senior Technical Analyst, LKP Securities said, "Bears exerted downward pressure on the Nifty after an initially positive start. Sentiment remained somewhat weak as the market closed. Support is positioned at 21,850, and a breach below this level could potentially initiate a correction towards 21,700. On the upside, resistance is identified at 22,000."

Further, on Bank Nifty, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty index is currently witnessing an intense battle between bulls and bears, and a decisive move is anticipated soon. The lower-end support is situated in the 45600-45500 zone, and a conclusive break below this on a closing basis is expected to trigger a sharp correction. Conversely, a break above the higher-end resistance at 46200 could lead to substantial short-covering moves, propelling the index towards the 46500 level."

Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher expects Nifty to find support and resistance around 21,800 and 22,100 on February 8th. While Bank Nifty is likely to see a support of 45,400 and resistance around 46,300.

Stocks To Buy Today:

Koothupalakkal has recommended to buy three stocks today. They are:

- BUY RBA cmp 116.25 Stop Loss 113 Target 122

- BUY ABB LTD cmp 4575 Stop Loss 4490 Target 4740

- BUY HBL POWER cmp 550.90 Stop Loss 542 Target 574

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.