Nifty may reclaim 18,000 with all eyes fixed on RBI policy this week: Experts


Nifty’s immediate goalpost is seen at the 18,000 mark with aggressive targets at the psychological 18,300 mark, says Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities.Indian market erased previous week’s losses in an extremely volatility week ended February 3 amid a host of domestic as well as global headwinds. The benchmark indices, however, ended the week in the green with the BSE Sensex adding 1,510.98 points or 2.54 percent to close at 60,841.88 and Nifty50 up 249.65 points or 1.41 percent to end at 17,854.Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities | Technically, for Nifty traders, the immediate hurdle would be the 20-day SMA (Simple Moving Average) or 17,950. As long as the index is trading above 17,700, the pullback formation is likely to continue above which it could move up to 18,000. On further upside the index could move up to 18,150. On the flip side, below 17,700 the weak sentiment is likely to accelerate and below the same the index could retest the level of 17,500-17,400.Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | Recovery picked up momentum on February 3 as the Nifty index surpassed the hurdle zone of 17,650-17,700. The Nifty is approaching the 20 DMA and can test the level of 18,000 on the higher side. On the other hand, the near term support is placed at 17,700 with the major support near 17,350.Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities | After wobbling in the morning session, markets regrouped and maintained firm footing on Friday. The positive takeaway was that the benchmark Nifty will now aim to reclaim the psychological 18,000 mark in the week ahead. Besides an uptick in banking stocks, buoyancy in Adani group stocks such as Adani Enterprises, Adani Ports and Ambuja Cement led the rebound. Technically, as long as Nifty holds above its make-or-break support at 17,353 mark, optimism may continue. The Nifty’s immediate goalpost is seen at the 18,000 mark with aggressive targets at the psychological 18,300 mark.Joseph Thomas, Head of Research, Emkay Wealth Management | The markets will look forward to the RBI policy due next week for indications on likely moderation in the stance, and also with respect to the policy in relation to liquidity management. While some amount of swings on either side are expected in the coming weeks, the markets would ultimately settle at levels dictated by the fundamentals.Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities | There will be a number of significant events taking place in the forthcoming week. To begin with, we have a balance of trade data of two major economies, the US, and the UK. China will publish its MoM and YoY inflation figures. The UK will also reveal GDP and three-month average GDP figures. Investors across the world will keenly watch these numbers since they will decide the direction of global indices. Back home, the outcome of the Reserve Bank of India’s Monetary Policy Committee (MPC)’s two-day meeting (during February 6-8) will be taking the centre stage. The CPI inflation has been below the RBI’s tolerance band of 6% for two consecutive months. D-Street expects a 25 basis points (bps) rate hike and a conservative tone from the RBI. Considering the number of key events in the upcoming week, investors are advised to remain vigilant and prudent in their investing picks.Rohan Patil, Technical Analyst, SAMCO Securities | Nifty stands at strong support near 50 EMA at 17,400 levels on the weekly chart. If prices fail to hold at a given level, then it’s likely to see a further correction towards 17,200–17,000 levels. Only a sustained close above 18,250 levels is likely to trigger bullish momentum for 18,500 levels. On the weekly chart, there is a range contraction which suggests a strong directional move is on either sides of the cards.

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