Indian stock markets ended 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. According to reports from LiveMint, the Nifty 50 fell 0.76% to 22,603.05, while the Sensex declined 0.59% to 72,638.70. 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. Recent market data shows mixed performance with Usha Martin Ltd gaining 0.45% and Bank of Maharashtra showing positive momentum in current trading sessions.
Nagaraj Shetti of HDFC Securities provided a technical perspective on the market's performance, noting that 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 the rate hike. As reported by LiveMint, the index closed lower by 173 points with a reasonable negative candle formation on the daily chart. Shetti identified potential support levels around 22,400 and 22,200, while resistance could be found around 22,800 and 23,100 in the near term.
Shetti recommends Bank of Maharashtra at ₹84.10 with a target of ₹91 and stop loss at ₹80 for a 2-3 week timeframe. According to the analysis reported by LiveMint, the stock price moved up on Wednesday after a narrow range movement in the last couple of weeks, with larger degree bullish patterns like higher highs and lows intact on the weekly chart. The volume and RSI pattern signals indicate more upside potential in the near term, with recent market data showing continued positive momentum for the banking stock.
For Usha Martin at ₹518.50 with a target of ₹558 and stop loss at ₹495 for a 2-3 week timeframe, Shetti noted that the stock price was in a broader range movement over the last few months but observed a bullish pattern like higher tops and bottoms. As reported by LiveMint, the stock price bounced back sharply after forming a new higher bottom at ₹481 levels this week, with volume and RSI patterns indicating positive bias for the stock price ahead. Recent trading data confirms the stock's continued strength with Usha Martin Ltd gaining 0.45% in current sessions, supporting the technical analysis and investment recommendation.
