Indian Stock Markets Open Flat as Investors Await RBI Policy Decision
The domestic benchmark indices, Nifty 50 and BSE Sensex, commenced Friday's trading session on a largely unchanged note. Market participants adopted a cautious stance, eagerly anticipating the Reserve Bank of India's monetary policy announcement scheduled for later in the day. The central bank's decision is expected to provide crucial insights into the nation's economic growth trajectory and liquidity conditions, with widespread predictions pointing towards a continuation of the current interest rate pause.
Early Market Performance and Sectoral Trends
As of 9:18 AM IST, the Nifty 50 exhibited a marginal decline of 0.07%, settling at 25,626.2 points. Simultaneously, the BSE Sensex recorded a negligible decrease of 0.01%, trading at 83,313.22. A sectoral analysis revealed a predominantly negative sentiment, with eleven out of sixteen key sectors opening in the red. The broader market indices also faced pressure, as the small-cap index witnessed a decline of 0.9%, and the mid-cap index fell by 0.3%.
RBI Policy Expectations and Economic Context
The Reserve Bank of India is widely anticipated to maintain the existing interest rates during its policy announcement at 10:00 AM IST. This expectation is bolstered by several favorable economic factors, including moderate inflation levels and reduced concerns regarding potential US tariffs. Recent budgetary initiatives aimed at promoting domestic manufacturing and exports, coupled with a strategic trade agreement with Washington, have further alleviated external economic pressures, providing the central bank with room to sustain its current monetary stance.
Expert Technical Analysis and Stock Recommendations
Rajesh Palviya, Senior Vice President of Technical and Derivatives Research at Axis Securities, provided an in-depth market outlook and specific stock recommendations for investors.
Nifty 50 Technical Outlook
The benchmark Nifty 50 index has been consolidating within a range of 26,300 to 24,500 levels since September 2025, indicating a prevailing sideways trend. A decisive breakout above the 26,000-26,400 resistance zone could potentially trigger a fresh wave of buying momentum. On the support front, the bullish gap formed on February 3, 2026, between 25,563 and 25,108 levels, is expected to act as a strong support area. The daily Relative Strength Index (RSI) remains in positive territory, signaling rising strength.
Birlasoft Ltd (CMP: ₹463)
Technical Analysis: On both daily and weekly charts, Birlasoft has decisively broken above its past one-year "multiple resistance zone" at the ₹454 level on a closing basis, indicating a robust resurgence of bullish sentiment. The stock is trading comfortably above its 20, 50, 100, and 200-day Simple Moving Averages (SMAs), with these averages trending upward alongside rising prices, thereby reconfirming the bullish trend. The daily, weekly, and monthly RSI indicators are in positive territory, signaling increasing strength. A daily "Bollinger Band" buy signal further indicates heightened momentum, supported by rising trading volumes over the past 3-4 days, which signify increased market participation.
Investment Recommendation: Investors are advised to consider buying, holding, and accumulating this stock. The expected upside targets are in the range of ₹485-500, while the downside support zone lies between ₹440-425.
Steel Authority of India Ltd (SAIL) (CMP: ₹159)
Technical Analysis: SAIL is exhibiting a strong uptrend on daily and weekly charts, characterized by the formation of a series of higher tops and higher bottoms, which underscores sustained bullish sentiment. Additionally, the stock has surpassed a multi-month resistance zone at ₹144 levels on a closing basis, reinforcing a positive bias. It is trading well above its 20, 50, 100, and 200-day SMAs, with these averages also inching higher alongside price appreciation, further validating the bullish trend. The daily, weekly, and monthly RSI readings are in positive territory, indicating rising strength. Both daily and weekly "Bollinger Band" buy signals point to increased momentum.
Investment Recommendation: Investors should consider buying, holding, and accumulating SAIL shares. The anticipated upside targets are between ₹175-185, with a downside support zone ranging from ₹152-145.
Adani Energy Solutions Ltd (CMP: ₹1,013)
Technical Analysis: Over the past year, Adani Energy Solutions has been consolidating within a broad range of ₹1090-655, reflecting a short to medium-term sideways trend. However, the current week has witnessed a strong buying movement accompanied by substantial trading volumes, signaling a potential shift in momentum. This upward thrust is expected to continue, potentially driving the stock towards the ₹1100-1200 levels. The daily, weekly, and monthly RSI indicators are in positive territory, indicating rising strength. The stock is sustaining above its 20, 50, 100, and 200-day SMAs, which reconfirms a positive bias.
Investment Recommendation: Investors are advised to consider buying, holding, and accumulating this stock. The expected upside targets are in the range of ₹1,100-1,200, while the downside support zone lies between ₹980-935.
Disclaimer: The views and recommendations presented above are those of individual analysts or broking companies and do not represent the stance of Mint. Investors are strongly advised to consult with certified financial experts before making any investment decisions.
