Ahead of RBI's policy meeting, Raja Venkatraman recommends stocks for 5 February
Subscribe to enjoy similar stories. On 4 February, global cues dictated the trends once again. After a weak start that was beset with some apprehension, the strong resurgence by the bulls has surprised the bearish camp to move beyond the Budget-day high.
The trends do not indicate any sign of a reversal; hence, you should continue to look for bullish opportunities. The markets displayed volatility once more on Sensex expiry. A strong closing saw the Nifty rise above 23,700 points comfortably while the Bank Nifty went above 50,000.
There was a widespread rally in the market on Tuesday. Barring fast-moving consumer goods (FMCG) stocks, all the other sectors seem to be in a revival mode and could look to extend their rise. While we see some positive exuberance from the Nifty, the Bank Nifty too has joined the upward momentum as we head towards the end of the week.
The strong action displayed by Nifty right from the start of the day indicated that the bullish exuberance could extend. With the Bank Nifty joining the party one can definitely feel the vibes emanating on the bullish side. However, one must remember that the trends are not bullish but a rebound from lower levels.
Hence, it would be prudent to maintain a ‘buy on dip and sell on rally’ approach. Also read | Buying the dip? These five fundamentally strong stocks are down as much as 50% from 52-week highs. All eyes are on a much-awaited rate cut by the Reserve Bank of India on 7 February post the announcement of the Budget for 2025-26.
As for options, the same vibes do not extend to it as there is a call writing seen at 23,800, which could hold back the rise. These levels also coincide with the Fibonacci resistance at 50% of the fall seen from the December highs. As
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