Introduction:

With the US Fed meeting and Interim Budget now in the rearview mirror, the focus of domestic markets shifts to the upcoming RBI policy meeting. Despite the uncertainties, positive sentiments prevail post-budget, reflecting in market performance. Let's recap the highlights of the week and analyze market trends ahead of the RBI meeting.

Market Performance:

The Nifty remained in positive territory throughout the week, closing with gains of 156 points at 21,854 levels. Majority of sectors ended in green, with notable buying observed in Oil & Gas, Metals, PSU Banks, and IT.

Oil Marketing Stocks:

Oil marketing stocks surged 3% as Brent crude fell to a nearly 1-month low at $78/bbl amidst a ceasefire in the Middle East. The decline in crude prices buoyed investor sentiment in the sector.

Tech Stocks:

Tech stocks witnessed a fresh buying spree driven by bargain hunting post-strong quarterly results from Meta and Amazon. The uptick in tech shares contributed to the overall positive market sentiment.

PSU Banks:

PSU bank stocks surged over 2% as the 10-Year G-Sec Yield fell to an 8-month low at 7.04% following the Finance Minister's announcement of a lower borrowing plan. The decline in yields provided a boost to PSU banks.

Market Outlook:

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, expects the market to remain in positive territory, citing high sentiments post-budget and commendable delivery. However, attention is now on the RBI policy meeting for further cues.

Technical Analysis:

Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities, highlights the short-term uptrend status of Nifty, albeit with the possibility of high volatility at new highs. Immediate support is at 21,700 levels, with resistance expected around 22,100 - 22,200 levels.

Conclusion:

As markets navigate through post-budget sentiments and prepare for the RBI policy meeting, investors remain cautiously optimistic. The positive momentum witnessed across sectors underscores resilience amidst market fluctuations. Attention will now be on key developments in monetary policy and global factors influencing market trends in the week ahead.