First RBI Monetary Policy under Governor Sanjay Malhotra, Delhi Election Results... Market guru Anil Singhvi explains how to navigate D-Street now

RBI Monetary Policy, Delhi Election Results: With benchmark indices Nifty 50 and Sensex gyrating between gains and losses since Budget announcements, all eyes are now on two big events: The year's first RBI policy review, also the first under the new central bank governor Sanjay Malhotra, and the Delhi election results this weekend. Zee Business Managing Editor Anil Singhvi shares his views on Dalal Street as invetsors await the February RBI monetary policy review and the national capital poll results. 

How market guru Anil Singhvi views D-Street nearly a week into Budget announcements

The market wizard suggests investors continue a 'buy on dips' strategy to navigate Dalal Street for now.

He suggests buying only at key support levels and taking profits at important resistance levels.

Singhvi expects strong imminent moves in midcap and smallcap stocks, offering plentiful opportunities than the rest of the market. 

According to the market wizard, a Bharatiya Janata Party (BJP) win in the national capital Assembly polls, defeating the incumbent Aam Aadmi Party (AAP) administration, will be mildly positive for Dalal Street.  

Here are four other things he points out: 

• The RBI policy is expected to be positive for D-Street.
• Headline indices look less likely to slide below their January 27 lows in a positive signal for Dalal Street.
• One should continue with the 'buy on dips' strategy as long as Nifty and Nifty Bank stay above 23,300 and 49,300 levels on a closing basis, respectively.
• Clear moves above 23,800 and 50,500 in the Nifty and Nifty Bank indices will lead to further gains, respectively. 
• The Delhi election is set to have a negligible impact on the market. 

Should investors focus on banking and other financial stocks ahead of the February RBI monetary policy review? 

The market guru believes that the Nifty Bank is looking stronger than the 50-scrip headline index at the current juncture. 

The market is widely expecting the February review to bring the first reduction in post-COVID interest rates, says Singhvi.  

He expects the Nifty Bank to stay strong ahead of policy announcements.

What to expect in the upcoming RBI Monetary Policy?

Eight out of every 10 economists polled by Zee Business expect a reduction of 25 basis points in the repo rate in the February 7 policy statement. 

The remaining two expect no change in the key rate in this policy. 

Six out of every 10 respondents expect the RBI to tweak its GDP growth and inflation forecasts, according to the poll. 

ALSO READ: Anil Singhvi's Post-Budget Market Strategy (Feb 6): Important levels to track in Nifty50, Nifty Bank today

Delhi Election Voter Turnout

Meanwhile, Delhiites voted for the 70 seats of the Delhi Assembly in a single phase on Wednesday with a total voter turnout of more than 60 per cent, according to provisional data available till 11:30 pm. Electrors cast their ballots at 13,766 polling stations across the national capital's 70 constituencies to decide the fate of 699 candidates.

The polling in all constituencies began at 7 am and concluded at 6 pm. The final turnout is yet to be announced as the voter turnout figures are still getting updated on the app.