Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 8 ahead of RBI policy

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday following sell-off in US and Asian markets, and ahead of the Reserve Bank of India’s (RBI) monetary policy announcement.

The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 24,200 level, a discount of nearly 170 points from the Nifty futures’ previous close.

The RBI is expected to keep repo rates steady at 6.5% for a ninth straight meeting. RBI Governor Shaktikanta Das’ outlook on India’s inflation and GDP growth will be key to watch out for.

On Wednesday, the domestic equity market benchmark indices ended over a percent higher each, with the Nifty settling near 24,300 level.

The Sensex rallied 874.94 points, or 1.11%, to close at 79,468.01, while the Nifty 50 settled 304.95 points, or 1.27%, higher at 24,297.50.

Nifty 50 formed a small positive candle on the daily chart with lower shadow.

“Technically, this pattern signals an upside bounce in the market after a reasonable downward correction. Nifty 50 is currently placed at the lower area of crucial opening downside gap of 5 August around 24,350 levels and a sharp upmove from here could fill this gap around 24,685 levels,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the short-term trend of Nifty seems to have reversed on the upside and a follow-through upmove is required from here to consider this as a short-term bottom reversal pattern. According to him, a decisive move above 24,400 levels could pull Nifty towards another resistance of 24,700 levels quickly.

Here’s what to expect from Nifty 50 and Bank Nifty ahead of RBI policy today:

Nifty 50 Prediction

Nifty 50 index shifted into a sustainable upside bounce on August 7 and closed the day higher by 304 points.

“Nifty remained sideways during the session as traders waited for the RBI monetary policy today. An indecisive candlestick pattern is visible on the daily chart. On the higher end, resistance is observed at the 24,400 - 24,500 levels. Selling pressure around that level might induce a correction in the market,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the higher end, he believes the trend might change to bullish if Nifty gives a decisive breakout above 24,500.

Based on the current market momentum, VLA Ambala, Co-Founder of Stock Market Today, expects the Nifty 50 index to retest the 24,450 - 24,520 range within 3 days.

“We may expect volatility to prevail in the next week. In this situation, I recommend short-term investors remain cautious and long-term investors start partial investments. After analyzing the market, Nifty can expect support levels between 24,250 and 24,200 and face resistance around 24,470 and 24,565 in the next session,” Ambala said.

Bank Nifty Prediction

Bank Nifty index rallied 370.70 points, or 0.75%, to close at 50,119 on Wednesday forming an Inside Bar candlestick pattern on the daily charts.

“Bank Nifty index too rebounded marginally as the index has been trading around the 50% retracement level of the previous upmove. The reaction to the RBI Monetary policy will be important to see for the banking stocks, as the sector has relatively underperformed in the recent past,” said Ruchit Jain, Lead Research, 5paisa.com.

According to Jain, the support for Bank Nifty index is placed around 49,700 - 49,650, and if this is breached then we could see a down move towards 48,850. On the flipside, the resistances are seen around 50,530 followed by 51,060.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.