By Mr. Ruchit Jain (Equity Technical Analyst, Angel Broking):
"Post the mid-week holiday, the benchmark indices opened on a flat note today. However, with the open high same scenario, Nifty started correcting right from the word go. Market participants were eying the outcome of the monetary policy by RBI which was in line with the expectations of the majority. But, without any meaningful pullback move, the index crept lower throughout the day and ended with a cut of about one and a half percent.
In last couple of sessions, the Nifty indicated some signs of strength above the 12000 mark. However, once again the index has been unable to sustain above the same and has corrected post registering high around 12100. If we look at the lower time frame (hourly) chart, the index has broken below the support of a 'Rising Wedge' pattern which was placed around 11950. The mentioned pattern indicates probability of a correction in near future as a result of which, we witnessed a sharp sell-off in later half. Accordingly, the Nifty could continue this corrective phase in next few sessions towards the supports of 11770 followed by 11660. On the flipside, the earlier support of 11950-12000 zone could now act as resistance on any pullback moves.
All the sectoral indices ended in red today wherein the Banking and Financial Services space underperformed the most. For near term, traders are advised to stay light on positions and await for the index to test the above mentioned supports."