RBI policy: 3 rate-sensitive stock picks ahead of MPC outcome

The Reserve Bank of India (RBI) monetary policy committee (MPC) will announce its outcome Friday, February 06. The MPC lowered rates in December 2025, with the majority of experts expecting a status quo and note cutting rates further. They believe that the tone and guidance of the policy statement will be important.

RBI MPC expected to pause in February after the December 2025 rate cut. Committee likely to signal a nimble, forward-looking response framework amid firm growth and easing external risks post US trade deal, said Radhika Rao, Executive Director & Senior Economist, DBS Bank.

"Despite inflation moving off lows and rupee pressures persisting, further rate cuts may be avoided given deposit mobilisation challenges and risk of portfolio outflows. RBI expected to rely on direct liquidity, bond stability and currency management measures, with bond purchases continuing this quarter and in Apr–Jun 2026," he said.

Ahead of the RBI policy, rate sensitive stocks from banking, financials, automobile, real estate and others will be in focus for the day. In this backdrop, Kunal Shah, Senior Technical Analyst at Mirae Asset ShareKhan has suggested three stocks to buy to play the MPC theme. Here's what he said:
 

ICICI Bank | Buy

ICICI Bank Ltd is exhibiting a compelling bullish reversal on the weekly timeframe, signaling a potential shift in market sentiment. After retracing to its previous swing high of Rs 1,335, the stock found significant buying interest, transforming old resistance into new support. This price action culminated in the formation of a Bullish Engulfing candle, a classic indicator that buyers have regained control. The technical setup is further bolstered by the RSI), which successfully bounced off its historical support level of 45. This suggests that momentum is shifting back in favor of the bulls just as the stock maintains its position above key short-term moving averages, specifically the 20-day DMA and 40-day EMA.
 

Max Financial Services | Buy  

Max Financial Services Ltd (MFSL) is displaying a robust bullish structure on its weekly chart. The stock is navigating within a well-defined parallel uptrend channel, characterized by a consistent series of higher highs and higher lows. Recently, the price action reached the lower boundary of this channel, where it encountered significant buying interest, confirming the strength of this dynamic support zone. The bullish sentiment is further reinforced by a positive crossover on the weekly timeframe. This technical event—typically involving a shorter-term moving average crossing above a longer-term one—serves as a powerful signal of strengthening upward momentum. Dips toward Rs 1,635 support level are viewed as favorable accumulation opportunities for potential targets at Rs 1,800 and Rs 1,900 as the stock trends toward the upper resistance line.
 

Shriram Finance | Buy

Shriram Finance Ltd is currently exhibiting a classic consolidation pattern at elevated levels, suggesting a period of price digestion before its next major move. From a technical standpoint, the stock remains firmly in a 'buy on dip' regime. The price action identifies a robust demand zone between Rs 950 and Rs 960, which serves as a critical floor for bulls. As long as the stock maintains this level, the primary uptrend remains intact. On the upside, the immediate hurdle is pegged at Rs 1,020. This level acts as a psychological and technical ceiling; however, a decisive breakout above it is expected to trigger significant short covering. Such a move would likely accelerate momentum, propelling the stock toward targets of Rs 1,070 and Rs 1,100.