Bank of Maharashtra and Usha Martin
RBI rate hike drags indices lower, Shetti flags Bank of Maharashtra and Usha Martin for short-term gains
Indian stock markets ended a two-day winning streak on Wednesday after the Reserve Bank of India raised the repo rate by 25 basis points to 5.5%, shifting its policy stance to 'calibrated tightening'. The Nifty 50 fell 0.76% to close at 22,603.05, while the Sensex declined 0.59% to 72,638.70. Both indices had already been down around 0.7% ahead of the policy decision. The rupee slipped to a five-month low against the US dollar, bond yields rose, and Brent crude gained 1.3% to approximately $102 a barrel following the announcement.
Nagaraj Shetti of HDFC Securities recommends Bank of Maharashtra and Usha Martin for short-term gains over a 2–3-week horizon. For Bank of Maharashtra, he sets a target of ₹91 from the current level of ₹84.10. For Usha Martin, the target is ₹558 from ₹518.50. The bullish outlook is based on technical patterns including higher highs and lows, positive volume, and RSI signals. Usha Martin additionally shows strength from a bounce off a higher-bottom formation near ₹481.
The Nifty 50 failed to sustain recent highs and slipped into weakness after the rate hike, closing lower by 173 points. A negative candle formed on the daily chart following a gap-down opening, indicating a turn down from near the immediate resistance of 22,800. The index appears to be forming a new lower top, with potential support at 22,400 and 22,200 levels, while resistance is seen at 22,800 and 23,100 on any bounce.
Bank of Maharashtra has moved up after a narrow range, with larger-degree bullish patterns intact on the weekly chart, supported by volume and RSI indicating near-term upside. Usha Martin, after a broader range over recent months, shows higher tops and bottoms, with a sharp rebound from the ₹481 level and volume and RSI pointing to a positive bias ahead.
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