Buy or sell stocks, Feb. 6 -- The Indian stock market is expected to open flat to mildly negative, with investors adopting a cautious stance ahead of today's RBI Monetary Policy announcement. While the recent trade agreement continues to provide an underlying positive backdrop by easing external headwinds and supporting export-oriented sectors, the sharp multi-day rally has clearly entered a consolidation phase. Profit-taking at higher levels and the continued absence of sustained FII participation, despite the trade-led optimism, remain near-term drags on sentiment.

Domestic fundamentals such as capex momentum and macro stability remain supportive, but near-term market direction is likely to be driven primarily by cues from the RBI's po...