Stock recommendations: Raja Venkatraman picks these three stocks for today — 6 February

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Subscribe to enjoy similar stories. On February 5, strong winds of bearishness continued to curb any revival in the Nifty. We have to wait for global cues to settle downso we can handle the positive signs that are emerging slowly.

With stock-specific action being triggered, investors need to watch their steps as trends seem brittle now. We saw the Nifty halt at 23800 while Bank Nifty, ahead of the RBI policy event, maintained itself above 50000. Indian markets paused after soaring on Tuesday, with the Sensex surpassing the 78,000 mark.

The Nifty 50 also posted significant gains in the last week and is seen hinting at some positive bias in the coming days. The midcap and smallcap index continue to remain hesitant, at this point in time. Nifty Bank extended its momentum from the previous session's 1.7% rise, adding another 0.36% on Wednesday.

While a sell-on rally approach has been advocated by all and sundry, one needs to factor in that in an event-driven week, the possibility of a trend becomes difficult. The strong upmove seen yesterday was a sigh of relief. Now the key levels of 23500 have been held, and we have to consider that the upper echelons always have been a seller’s delight.

The open interest in the options data suggests that PCR remains below 1, highlighting that the trends remain pressured. Moving into the upcoming sessions, one needs to consider how the trends shall flow into the upcoming sessions. Bank Nifty shall continue to remain an important index to watch out for as the expectation from RBI policy and the Federal Reserve outcome could give cues to this index going forward.