The medium-term market texture is positive, but a fresh uptrend rally is possible only if it dismisses the 23,700 level, according to Amol Athawale, vice president of technical research at Kotak Securities.

Above this level, it could retest the 23,800 mark. The index could continue its upward movement, potentially reaching 24,000, Athawale said. “If it falls below 23,500, then the market may extend its correction phase down to 23,400–23,375.”

Despite volatility during the RBI governor’s monetary policy announcement, the Nifty stayed above the 21 EMA on the daily timeframe, indicating a positive short-term trend. The trend is likely to remain positive if the index stays above 23,450, according to Rupak De, senior technical analyst at LKP Securities. “On the higher end, resistance is placed at 23,700. A decisive move above 23,700 could lead to a rally toward 24,050.”

For Bank Nifty, the immediate support lies near 49,650, while on the upside, 50,600 will act as the resistance, according to Hrishikesh Yedve, research analyst at Asit C. Mehta Investment Interrmediates Ltd. “Traders should closely monitor these levels for potential opportunities. However, looking at weekly formation, the buy on dips strategy should be adopted in Bank Nifty.”

Market Recap

The NSE Nifty 50 and BSE Sensex declined for three sessions in a row on Friday as ICICI Bank Ltd. and HDFC Bank Ltd. share prices dragged. However, on a weekly basis, both indices ended up for the second week.

Market participants parsed the Reserve Bank of India’s Monetary Policy Committee statement after the rate-setting panel cut the repo rate.

The NSE Nifty 50 ended 43.40 points or 0.18% down at 23,559.95 and the BSE Sensex settled 197.97 points or 0.25% lower at 77,860.19.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the third straight day on Friday as they offloaded stocks worth approximately Rs 470.4 crore.

Domestic institutional investors stayed net buyers for the third straight session as they mopped up equities worth Rs 454.2 crore, according to provisional data from the National Stock Exchange.

F&O Cues

The Nifty February futures were down 0.28% to 23,622.85 at a premium of 62.9 points, with the open interest down 0.16%.

The open interest distribution for the Nifty 50 Feb. 13 expiry series indicated most activity at 25,500 call strikes, with the 22,500 put strikes having maximum open interest.

Stocks To Watch

  • Life Insurance Corp: The company has extended Sunil Agrawal’s term as chief financial officer until March 2026.

  • L&T Finance: The company has approved the acquisition of Paul Merchants Finance’s gold loan business through a slump sale for Rs 537 crore.

  • Waaree Energies: The company has commenced operations at its 1.4 GW solar cell manufacturing facility in Gujarat.

  • Aditya Birla Fashion and Retail: The company has entered into a pact with Fidelity for subscription of 3.95 crore shares of the company.

Global Cues 

Stocks in the Asia-Pacific region fell on Monday as US President Donald Trump’s decision to announce 25% tariffs on steel and aluminum to all countries added jitters to the already volatile stocks.

Japan’s Nikkei was down 90 points, or 0.20% at 38,732, while South Korea’s Kospi fell 0.22%, or 6 points to 2,516 as of 6:30 a.m. Future contracts in China hinted at a positive stock start, while Hong Kong looks poised for losses.

Commodities fell as Trump said the metals tariffs would apply to imports from all countries, though the effective date was not announced. Trump’s fresh tariff plans come ahead of Federal Reserve Chair Jerome Powell’s semiannual congressional testimony. Powell will be presenting this to the Senate Banking Committee.

Meanwhile, China’s retaliatory tariffs on US goods will take effect on Monday. The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.20% up at 108.25.

Stocks in the US tumbled on Friday weighed by tariff impacts and speculations the Fed is in no rush to cut interest rates. Nonfarm payrolls rose 1.43 lakh in January after upward revisions to the prior two months.

The S&P 500 and the tech-heavy Nasdaq Composite plunged 0.95% and 1.36%, respectively. The Dow Jones Industrial Average fell 0.28%.

Crude oil prices advanced after posting a weekly loss on the impact of a potential trade war. The Brent crude was up 0.43% at $74.98 a barrel as of 6:45 a.m. IST, and the West Texas Intermediate was up 0.39% at $71.28.

Currency Update

The Indian rupee strengthened by 15 paise to close at 87.43 against the US dollar on Friday after the Reserve Bank of India cut the repo rate for the first time in five years.

Following the Monetary Policy Committee’s announcement, the local currency rose 25 paise to 87.33 against the greenback. It opened higher at 87.48 a dollar. The rupee had closed at 87.58 on Thursday, according to Bloomberg data.

. Read more on Markets by NDTV Profit.The NSE Nifty 50 ended 43.40 points or 0.18% down at 23,559.95 and the BSE Sensex settled 197.97 points or 0.25% lower at 77,860.19.  Read MoreMarkets, Business, Notifications 

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