<ul>
<li>The domestic benchmark equity indices, the Sensex and the Nifty 50, began Thursday's trading session higher tracking the RBI's largest-ever dividend to the government.</li>
<li>There are positive and negative aspects for the market right now, according to Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services.</li>
<li>"The RBI's record dividend of ₹2.11 lakh crores to the government is the greatest plus; it would offer the government an extra 0.3% of GDP in fiscal flexibility," said Dr. V K Vijayakumar.</li>
</ul>
<p><strong>Sensex and Nifty 50 rise as RBI's record dividend boosts market sentiment.</strong></p>
<h2><strong>RBI's Record Dividend and Its Impact on the Market</strong></h2>
<p>The Sensex opened at 74,250, and Nifty 50 started above 22,600, reflecting a positive market sentiment driven by the Reserve Bank of India's (RBI) largest-ever dividend to the government. This dividend of ₹2.11 lakh crores is expected to provide the government with an additional 0.3% of GDP in fiscal flexibility, potentially leading to increased infrastructure spending and a reduced budget deficit. The decline in bond yields, indicative of lower government borrowing, is also seen as a positive development for banking stocks.</p>
<h3><strong>Federal Reserve's Inflation Concerns</strong></h3>
<p>However, the minutes from the Federal Reserve meeting, which highlight concerns over persistent inflation, present a negative aspect for equity markets. Investors are advised to remain cautious as these inflation worries could lead to tighter monetary policies, impacting market liquidity and investor sentiment.</p>
<h3><strong>Technical Analysis and Market Outlook</strong></h3>
<p>According to Osho Krishan, Sr. Analyst, Technical & Derivatives at Angel One, the bulls have extended their gains for the fifth consecutive session, although the momentum has slowed. Prices have been oscillating within a range for over three months, and the current key hurdle lies in the 22,700 - 22,800 range. A close above 22,800 could push prices towards 23,000 - 23,100, but this seems unlikely for the current trading week. On the downside, 22,400 is a crucial support level, and dips towards it can be seen as buying opportunities.</p>
<h3><strong>Stock Recommendations by Osho Krishan</strong></h3>
<p>Osho Krishan recommended two stocks for Thursday: Ipca Laboratories Ltd and NRB Bearing Ltd.</p>
<h2><strong>Ipca Laboratories Ltd</strong></h2>
<p>Ipca Laboratories Ltd has been showing a cycle of higher highs and higher lows, hovering above all its EMAs on the daily chart. The counter has seen decent traction in the last couple of trading sessions, supported by its 50 DEMA on the daily chart. The 14-period RSI has witnessed a positive crossover, indicating a bullish trend. Krishan recommends buying Ipca Laboratories around ₹1,310-1,300 with a stop loss of ₹1,250 and a potential target of ₹1,400-1,420.</p>
<h2><strong>NRB Bearing Ltd</strong></h2>
<p>NRB Bearing Ltd has seen strong traction in the last couple of trading sessions, with a multi-week breakout backed by robust volumes. Both MACD and RSI have shown a positive crossover, suggesting strong momentum. From a risk-reward perspective, the counter is in a lucrative zone and is poised to continue its upward march. Krishan recommends buying NRB Bearing around ₹340-330 with a stop loss of ₹315 and a potential target of ₹360-370.</p>
<h3><strong>Conclusion</strong></h3>
<p>In conclusion, while the RBI's record dividend has provided a significant boost to market sentiment, concerns over inflation and global developments warrant a cautious approach. Investors should monitor key levels and plan their trades accordingly. Stock-specific trades continue to be rewarding, but a selective approach is advisable moving forward.</p>
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