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Below is Reaction on post RBI Policy announcement by Mr. Santosh Meena, Head of Research, Swastika Investmart Ltd

The credit policy is neutral to positive for the market as the market was already expecting that interest will remain unchanged but the market is cheering on fact that there is no change in stance while ending GSAP is a little negative surprise but the governor's comment that he is ready to resume GSAP if there will be a requirement. The governor is confident about growth and didn't show much worry about inflation therefore the market is witnessing a bullish momentum post policy. I believe this event will have a few hours effect on the market however market will focus on global cues. We are outperforming despite a rise in US bond yields, the dollar index, and Crude oil prices.

Bank Nifty is showing bullish momentum post the policy but it has a critical supply zone in the 38000-38300 area and if it manages to take out this zone then we can expect a short-covering rally towards the 39000 level otherwise it may see selling pressure where 20-DMA of 37500 will be immediate support.

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