Stock market today: The domestic benchmark indices snapped a two-day winning streak on Wednesday after the RBI raised the repo rate by 25 basis points to 5.5% and shifted its policy stance to “calibrated tightening”, citing inflation risks from elevated oil prices and tighter global monetary conditions.
The Nifty 50 fell 0.76% to 22,603.05, while the Sensex declined 0.59% to 72,638.70. Both indices were already down around 0.7% ahead of the policy decision. The rupee slipped to a five-month low against the US dollar, while bond yields rose after the announcement. Brent crude gained 1.3% to around $102 a barrel.
Nagaraj Shetti of HDFC Securities has a positive near-term view on both stocks. He recommends Bank of Maharashtra with a target of ₹91 from ₹84.10 and Usha Martin with a target of ₹558 from ₹518.50, both for a 2–3-week timeframe. The bullish setups are supported by higher highs and lows, positive volume and RSI signals, while Usha Martin has also bounced from a higher-bottom formation near ₹481.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
After showing promising bounce back in the last couple of sessions, Nifty 50 failed to sustain the highs and slipped into weakness on the backdrop of 25bps rate hike by RBI on its MPC meeting. Nifty 50 closed the day lower by 173 points.
A reasonable negative candle was formed on the daily chart that has closed lower after a gap down opening. Technically, Nifty 50 seems to have turned down from near the immediate resistance of 22,800 levels. It looks like a formation of new lower top at Tuesday’s high of 22,776. However, sharp follow-through weakness in the subsequent session could confirm a lower top formation.
Further weakness from here could find support around the 22,400 and 22,200 levels. Any bounce back could find resistance around 22,800 and the next level at 23,100 in the near term.
Stocks to buy
Buy Bank of Maharashtra at 84.10, Target 91, Stoploss 80s, Timeframe 2-3 weeks
The stock price has moved up on Wednesday after a narrow range movement in the last couple of weeks. Larger degree bullish patterns like higher highs and lows intact on the weekly chart. Volume and RSI pattern signals more upside in the near term.
Buy Usha Martin at 518.50, Target 558, Stoploss 495, Timeframe 2-3 weeks
The stock price was in a broader range movement over the last few months. We observe a bullish pattern like higher tops and bottoms over the period. The stock price bounced back sharply after forming a new higher bottom at ₹481 levels this week. Volume and RSI patterns indicate positive bias for the stock price ahead.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
