Monthly monetary policy - Rohit Gadia, CapitalVia Global Research Ltd

Views of Mr. Rohit Gadia, Founder & CEO, CapitalVia Global Research Limited post monthly monetary policy announcement.

The Reserve Bank of India (RBI) has announced its fifth bi-monthly monetary policy decision. As expected that RBI Governor has kept the rates unchanged i.e. CRR rate at 4% and repo rate at 6.75%.

NIFTY is expected to show a bearish movement as its immediate resistance is 8000, which is also its 50 DMA. If this level is crossed it might show a strong bullish movement. 7800 is a strong support. The RSI indicator is trading above 50, which supports the bullish view.

Banknifty is trading in a falling channel the upper trend line is around 17550 and 17600. Banknifty is also expected to show bearish movement below this resistance zone following this announcement. If it crosses this resistance zone, it will show a strong bullish movement. Rate sensitive sectors like banking, auto, infra will remain under pressure for short term.

Source : Equity Bulls

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