The Reserve Bank of India’s (RBI) 25 bps rate cut on Friday did not boost domestic stock markets, as the frontline indices ended in the red, dragged down by bank and financial services stocks. The rates were cut for the first time in nearly five years, in line with expectations, to stimulate economic growth. The benchmark BSE Sensex lost 197.97 points, or 0.25%, to close at 77,860.19, while the broader Nifty 50 index closed at 23,559.95, down by 43.40 points, or 0.18%.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty remained volatile after the RBI Governor’s monetary policy announcement. “The volatility did not push the index below the 21 EMA on the daily timeframe, signifying a positive short-term trend. The trend is likely to remain positive as long as the index stays above 23,450. On the higher end, resistance is placed at 23,700. A decisive move above 23,700 could lead to a rally toward 24,050,” he added.
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