RBI Holds Rates Steady Amid Inflation Woes: Market Analysis and Stock Picks 9 August 2024

August 8, 2024
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You’ve provided a comprehensive overview of the current market situation, focusing on Nifty, Bank Nifty, and specific stocks like TEXINFRA and NEWGEN. Here’s a summary of your analysis and strategy:

Nifty Overview:

Current Status: Nifty traded within a small range (around 100 points) and closed above 24,000 at 24,100. The RSI levels indicate mixed sentiment with 45 on the daily, 64 on the weekly, and 73 on the monthly timeframes.
Market Sentiment: Weak, due to geopolitical concerns, inflation, and unemployment. The market is also affected by RBI’s concerns about possible recession and high inflation, despite the unchanged rates (Repo at 6.5%, SDF at 6.25%, MSF, and Bank Rate at 6.7%).
Support Levels: 22,900 and 23,820.
Resistance Levels: 24,010 and 25,150.
Pattern: Bearish candlestick with a small upper wick, indicating potential downward pressure.

Bank Nifty Overview:

Support Levels: 50,000 and 49,650.
Resistance Levels: 50,250 and 50,350.

Stock Recommendations:

TEXINFRA:

Buy: 127
Target: 129/131/133/135
Holding Period: 1 to 4 days
Stop Loss: 124

NEWGEN:

Buy: 950 – 1000
Target: 1035/1055/1080/1120/1150
Holding Period: 1 to 4 days
Stop Loss: 920

Key Insights:

The market is showing signs of restlessness due to a combination of factors, including geopolitical tensions, economic challenges, and a lack of impactful domestic policies.
The RBI’s unchanged stance on rates suggests caution, but the underlying economic issues may prevent a quick recovery to the 4% inflation target.

This analysis sets a cautious tone for the coming days, with a focus on specific levels for Nifty and Bank Nifty and tactical opportunities in stocks like TEXINFRA and NEWGEN.

Credit: According to VLA Ambala, SEBI Registered Research Analyst and Founder of SMT Stock Market Today.

Given the current market conditions and the high valuation, it is advisable to adopt a cautious approach while investing. However, the identified sectors and stocks are trading at attractive prices and valuations, making them worth watching in the upcoming days.

For any updates or further recommendations, stay tuned and continue monitoring the market trends.

Disclaimer: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis. Stay cautious and keep an eye on key levels and upcoming budget announcements to adjust your strategies accordingly.

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More about the author: Vijay Laxmi, aka VLA Ambala, is a SEBI registered Research Analyst, and her research and views are published on various media platforms. Check here – https://smtstockmarkettoday.com/pr-and-media/

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This analysis and recommendations are provided by SEBI registered research analyst VLA Ambala.