The Bharat stock market experienced a significant downturn following the RBI’s decision to maintain the repo rate at 6.5 percent. Banking stocks took a hit, leading to a sharp decline in key benchmark indices. The Nifty 50 index plummeted by 212 points to close at 21,717, while the BSE Sensex witnessed a drop of 723 points, ending at 71,428. The Bank Nifty index also nosedived by 806 points, closing at 45,012.
The decision by the RBI to keep the repo rate unchanged for the sixth consecutive time spurred heavy selling pressure in the market. Analysts noted a cautious tone from the central bank’s committee, which failed to provide any indication of a future interest rate cut. As a result, rate-sensitive sectors saw losses, while sectors like PSU Bank, Oil & Gas, Healthcare, and IT ended in the green.
Despite the market turmoil, equity mutual funds in India saw a surge in inflows, reaching approximately ₹21,780 crores in January 2024 compared to ₹16,997 crores in December 2023. Systematic Investment Plans (SIPs) also hit a fresh record, amounting to ₹18,839 crore in January 2024, according to data released by AMFI.
Expert Analysis and Outlook for the Market
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, suggested that the short-term trend of the Nifty 50 index appeared to have turned downward, signaling potential weakness in the near term. However, he emphasized that the near-term uptrend remained intact, and any further weakness could present buying opportunities.
Ashwin Ramani, Derivatives Analyst at SAMCO Securities, provided insights into the Bank Nifty’s performance and options activity. He noted significant positions built by call writers at specific strike levels and suggested that the index might continue its downward trend, potentially reaching 44,500 levels.
Stock Recommendations from Market Experts
Ganesh Dongre and Shiju Koothupalakkal, two market analysts, offered recommendations on specific stocks:
Oil India Ltd: Ganesh Dongre advised buying at ₹513 with a target of ₹542 and a stop loss at ₹501, citing a favorable chart pattern indicating potential upward movement.
MCX: Dongre recommended buying at ₹3,860 with a target of ₹3,930 and a stop loss at ₹3,820, highlighting a bullish reversal pattern in the short-term trend.
Voltas: Dongre also suggested buying Voltas at ₹1,065 with a target of ₹1,110 and a stop loss at ₹1,040, citing a bullish reversal pattern and potential short-term uptrend.
Shiju Koothupalakkal recommended the following stocks:
Cochin Shipyard: Buy at ₹911.50 with a target of ₹950 and a stop loss at ₹896, based on positive candle formations and support levels.
Jindal Saw: Buy at ₹537.75 with a target of ₹565 and a stop loss at ₹522, indicating a higher low formation and positive trend.
Barbeque-Nation: Buy at ₹658 with a target of ₹692 and a stop loss at ₹640, following a triangular breakout and upward movement past significant levels.
These recommendations reflect the analysts’ assessments of the market conditions and potential opportunities for investors in specific stocks.