Post-Budget Focus Shifts to RBI MPC : 25 bps Rate Cut Expected - Tradebulls Securities Pvt Ltd
Nifty
With the Union Budget behind, market focus now shifts to the RBI MPC meeting (Feb 5-7), where a 25 bps repo rate cut (from 6.5% to 6.25%) is widely expected. Investors will closely watch new RBI Governor Sanjay Malhotra’s commentary on liquidity and future policy direction. Technically, the index has held above its 20-day Exponential Moving Average (DEMA) for two consecutive sessions, indicating resilience despite event-driven volatility. However, price action remains narrow-ranged, facing resistance at 23,630 (200-DEMA), limiting confidence in aggressive long positions. For the event-heavy week, key levels to track are 23,630 (resistance) and 23,260 (support). A decisive breakout beyond this range could drive strong momentum for the rest of the series. Until then, traders should focus on long-short opportunities in individual stocks while closely monitoring price action at key levels to navigate volatility effectively. Given the ongoing earnings season and macroeconomic shifts, maintaining a balanced trading stance will be crucial. Staying cautious around major support and resistance levels while avoiding breakdown candidates can help traders capitalize on evolving market trends.
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