Indian Stock Market Braces for RBI Monetary Policy Decision
The Indian stock market is poised for a flat to mildly negative opening as investors adopt a cautious stance ahead of the Reserve Bank of India's (RBI) Monetary Policy announcement scheduled for today. While the recent trade agreement continues to provide an underlying positive backdrop by easing external headwinds and supporting export-oriented sectors, the sharp multi-day rally has clearly entered a consolidation phase. Profit-taking at higher levels and the continued absence of sustained Foreign Institutional Investor (FII) participation, despite the trade-led optimism, remain near-term drags on market sentiment.
Domestic fundamentals such as capital expenditure momentum and macroeconomic stability remain supportive, but the near-term market direction is likely to be driven primarily by cues from the RBI's policy stance and external factors. The market's focus is squarely on the central bank's decision, which could set the tone for trading in the coming sessions.
Stock Market Today: Expert Analysis and Outlook
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is cautious to positive. She highlighted that the Nifty 50 index has crucial support placed at 25,500 and needs to sustain above 25,850 for an improvement in Dalal Street sentiments.
Speaking on the outlook of the Nifty 50 today, Parekh said, "The Nifty 50 index, since the last two sessions, is hovering in the range of the 25,800–25,550 zone, visibly finding consolidation as of now, and would need to move past the resistance zone of the 25,850 level to trigger a further fresh upward move in the coming days. The overall bias is currently maintained with a cautiously positive approach and would need to be sustained above the level of the 25,850 zone as of now, and would have the important and crucial support positioned near the 25,500 zone."
On the outlook of the Bank Nifty today, Parekh added, "The Bank Nifty index once again respected the important support zone of the 59,800 level during the intraday session and witnessed a revival to close above the 60,000 zone with bias once again maintained intact, continuing with the overall consolidation phase. With PSU Banks looking good and picking up momentum during the session, one can expect further gains. On the upside, as mentioned earlier, the index would desperately need a decisive breach above the 60,500 level to trigger a fresh upward move in the coming days."
Parekh stated that immediate support for the Nifty 50 index is located at 25,500, while the resistance level is at 25,800. The Bank Nifty is expected to have a daily range of 59,500 to 60,600.
Vaishali Parekh's Stock Recommendations for Intraday Trading
Regarding stocks to buy today, Vaishali Parekh recommended three stocks for intraday trading:
- LIC: Buy at ₹840, Target ₹880, Stop Loss ₹820
- GMR Power: Buy at ₹105, Target ₹115, Stop Loss ₹102
- PNB Housing Finance: Buy at ₹840, Target ₹885, Stop Loss ₹825
RBI MPC Meeting: Key Details and Context
The Reserve Bank of India (RBI) will announce its monetary policy decision today, 6 February 2026, Friday. The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) held its sixth and the last bi-monthly policy meeting for FY26 from February 4 to February 6, and the repo rate decision will be announced today.
The RBI has already cut the repo rate by a cumulative 125 basis points (bps) since February 2025. The February RBI's MPC meeting comes close on the heels of the recently announced Union Budget 2026–2027, as well as the announcement of the India–US trade deal, adding layers of complexity to the policy deliberations.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
