Profit booking seen post the event, 10100 – 9950 would be the immediate range
“Yesterday’s flat closing was followed by a soft opening in our market owing to cautious cues from the Asian bourses. The index posted ‘open-high’ and kept correcting gradually throughout the session to shed nearly seven tenths of a percent.
The price action seen during today’s session was a typical reaction from the market post the major event. Since, the outcome from RBI policy was on expected lines, traders chose to take some money off the table. Now, looking at the daily chart, the Nifty has closed below the ‘5 EMA’ on daily chart along with the negative crossover in ‘RSI-Smoothened’ well inside overbought territory. Considering all these observations, the Nifty may extend this corrective move towards the next support level of 9944. On the flipside, today’s high of 10081 would now act as an intraday hurdle for the index. At this juncture, traders are advised to stay light on positions and concentrate more on individual stocks with a proper exit strategy.”