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Unlocking Opportunity: Expert Insights on Bullish Rate-Sensitive Stocks After RBI’s Rate Cut

February 8, 2025
Smart Money

Majority Predict Rate Cut from RBI Under New Governor

In a recent survey conducted by Moneycontrol, a significant number of economists, bank treasury heads, and market experts have expressed the expectation of an imminent interest rate cut by the Reserve Bank of India (RBI) under the leadership of its new Governor, Sanjay Malhotra. The consensus indicates that the repo rate is likely to decrease from its current 6.5 percent to 6.25 percent.

RBI’s Recent Policy Decision

On the same day as the poll release, the RBI’s Monetary Policy Committee (MPC) confirmed that it had unanimously decided to cut the repo rate, officially setting it at 6.25 percent. Governor Malhotra emphasized the challenging backdrop of the global economy and noted that the “progress in global disinflation is stalling.” This supportive stance may aim to bolster economic growth amid uncertain international financial conditions.

Stock Recommendations Amid Rate Cuts

In light of the anticipated rate cut, Moneycontrol compiled insights from various financial experts, highlighting 11 rate-sensitive stocks for short-term investments. Each recommendation includes a current market price (CMP), targeted price levels, and suggested stop-loss orders to mitigate risks.

1. Bajaj Finance

  • CMP: Rs. 8,507.3
  • Strategy: Buy
  • Targets: Rs. 8,850 and Rs. 9,200
  • Stop-Loss: Rs. 8,100

A breakout from a triangle formation suggests a bullish trend, although caution is advised as the Relative Strength Index (RSI) indicates overbought levels.

2. Ujjivan Small Finance Bank

  • CMP: Rs. 38.65
  • Strategy: Buy
  • Targets: Rs. 41 and Rs. 42
  • Stop-Loss: Rs. 37

This bank recently broke out of a rectangular range and is now trading above the Ichimoku cloud, signaling bullish movement.

3. Ganesh Housing Corporation

  • CMP: Rs. 1,480.05
  • Strategy: Buy
  • Targets: Rs. 1,560 and Rs. 1,630
  • Stop-Loss: Rs. 1,420

The stock has been moving in a strong upward channel, with a bullish crossover in the MACD indicating continued momentum.

4. Maruti Suzuki India

  • CMP: Rs. 13,074
  • Strategy: Buy
  • Target: Rs. 13,800
  • Stop-Loss: Rs. 12,900

Formation of a Cup and Handle pattern suggests a significant breakout is possible with upside momentum.

5. IndusInd Bank

  • CMP: Rs. 1,065.55
  • Strategy: Buy
  • Target: Rs. 1,125
  • Stop-Loss: Rs. 1,050

After breaking a falling trendline, the stock showcases potential for upward movement.

6. ICICI Bank

  • CMP: Rs. 1,272.4
  • Strategy: Buy
  • Target: Rs. 1,330
  • Stop-Loss: Rs. 1,255

The stock is on the verge of a breakout supported by robust bullish structure.

7. State Bank of India

  • CMP: Rs. 752.25
  • Strategy: Buy
  • Target: Rs. 785
  • Stop-Loss: Rs. 735

Key trendline support suggests potential for recovery following a downward roll.

8. HDFC Bank

  • CMP: Rs. 1,743.85
  • Strategy: Buy
  • Target: Rs. 1,800
  • Stop-Loss: Rs. 1,715

A breakout above the volume-weighted average price indicates bullish prospects.

9. Kotak Mahindra Bank

  • CMP: Rs. 1,916
  • Strategy: Buy
  • Target: Rs. 2,127
  • Stop-Loss: Rs. 1,801

Consolidation above a sloping trendline suggests an improving short-term trend.

10. City Union Bank

  • CMP: Rs. 173.12
  • Strategy: Buy
  • Target: Rs. 203
  • Stop-Loss: Rs. 162

Persistent higher bottoms indicate a strong bullish signal in the stock.

11. KFIN Technologies

  • CMP: Rs. 1,170.3
  • Strategy: Buy
  • Target: Rs. 1,406
  • Stop-Loss: Rs. 1,078

The recent price movements strongly suggest a recovery and continuation of the uptrend.

Conclusion

As the RBI signals a willingness to cut rates, investor sentiment appears optimistic. The aforementioned stocks have been identified as potential opportunities for those looking to capitalize on this favorable scenario. However, it’s advisable for investors to conduct thorough research or consult with certified experts before making investment decisions, as market conditions can vary widely.

Disclaimer: The views and investment tips expressed by investment experts are their own and not those of Moneycontrol or its management. Always consult with certified professionals before making financial decisions.