February 08, 2024 / 09:11 AM IST
Sensex Today | Mandar Bhojane, Research Analyst at Choice Broking:
On February 8, the benchmark Sensex and Nifty indices are poised to open higher, with GIFT Nifty trends indicating a potential gain of 26 points for the broader index. Despite a flat performance on February 7, where both Sensex and Nifty struggled to maintain the 22,000 mark, market sentiment remains cautious ahead of the Reserve Bank of India’s monetary policy announcement on the same day.
The domestic market showed a range-bound movement amid robust PMI data and positive global cues. Investors are closely watching the RBI’s policy decision, with a focus on any indications of potential rate cuts and improvements in liquidity, although no change in stance is anticipated.
Observing the daily charts, it is evident that the Nifty has been trading within a narrow range for the past couple of weeks, signaling price stability. If the price breaks the 22130 level (All time high), there is potential for an upward movement towards the range of 22400-22500 in the coming days. Key support levels are identified at 21800-21750, while an immediate hurdle zone is situated at 22200-22400.
As the Bank Nifty index experiences a battle between bulls and bears, a decisive move is expected soon. The lower-end support is identified in the 45600-45500 zone, and a conclusive break below this could trigger a sharp correction. Conversely, a break above the higher-end resistance at 46200 may lead to significant short-covering moves, pushing the index towards the 46500 level.
On February 7, foreign institutional investors (FIIs) net sold shares worth Rs 1,691.02 crore, while domestic institutional investors (DIIs) purchased Rs 327.73 crore worth of stocks, according to provisional data from the NSE.
