Domestic markets are likely to open on a positive note on Thursday even as the Reserve Bank of India will announce its policy statement before noon. According to analysts, the focus will be on RBI stance as the central bank is in a delegate position to handle both growth and inflation at the same time.

"All eyes are on the outcome of MPC’s monetary policy review meet on Thursday and we expect the committee to maintain the status quo on rates, but may change their stance to neutral," said Ajit Mishra, VP– Research, Religare Broking, adding that their commentary on growth and inflation would be crucial.

Global markets lukewarm

SGX at 17,520 indicates that Nifty will breach 17,500-mark in early deal. The Nifty futures on Wednesday closed at 17,480 on the NSE, signalling a 40-point gap up opening for Nifty. Most Asian markets remained lukewarm, but up marginally (0.15–0.5 per cent) in early deal on Thursday. Though US stocks climbed overnight, futures are currently down.

Strong global market cues boosted local benchmark gauges as investors lapped up beaten-down stocks. Buying was seen in banking, realty and auto stocks on hopes thst interest rates may remain unchanged in the credit policy meet this week, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Technically bullish bias

"The last hour intraday breakout formation indicated continuation of an uptrend in the near future. In addition, on intraday charts, the Nifty is holding higher bottom formation which is broadly positive. For the trend following traders, 17,365 would be the trend decider level, and above the same, the index could move up to 17,550-17,625 levels. However, if the index trades below 17,350, a strong possibility of a quick correction up to 17,300-17,240 levels is not ruled out," he added.

Global stock markets facing challenge

According to S Ranganathan, Head of Research at LKP securities, as policy makers face one of the fastest pace of price increases in the developed markets, global stock markets are facing a challenge in pricing the likely actions by central bankers.

"Back home, the Nifty opened extremely weak and drifted closer to 17,000 levels on geo-political worries and soaring oil prices with passive emerging market funds booking profits. As bond yields price in ahead of the RBI policy, supply of paper ahead of a mega primary market offering kept investors circumspect though indices managed to recover substantial lost ground to end in the green in afternoon trade," he added.

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