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Sensex (62849) / Nifty (18634)

The Indian stock markets had a flat start to the session, with the benchmark index edging slightly higher in the first few hours amidst the announcement of the RBI policy. The monetary decisions were in line with market expectations, leading traders to take profits after the announcement. As a result, prices not only erased their morning gains but also ended the session with a loss of 0.48%, just below the 18650 level.

It was a disappointing session for the bull’s camp, as the market initially showed promising signs on the event day, indicating a potential move towards record high levels. However, traders preferred to book profits at this crucial juncture, considering the overbought conditions. The cascading effect of the weekly expiry resulted in prices breaking below intraday support levels, resulting in the loss of most of Wednesday's gains. Currently, prices are hovering around a key support level, and it will be important to observe if there is further profit booking in the early hours of the coming session. If so, prices may decline towards the 18500 zone, which could present a re-entry opportunity for the bulls. On the other hand, if there is no further weakness, prices may rebound from these levels and retest the levels of 18750 - 18800 before potentially reaching new all-time highs. Traders should monitor the mentioned levels closely and also keep an eye on global developments.

Nifty Bank Outlook (43995)

The Bank Nifty index had a positive start mirroring the benchmark index and kept the momentum for the initial trades. However, post the RBI monetary policy outcome, the index witnessed a plunge from the higher grounds which not only pared down initial gains but eventually slipped below the last closure and snapped its four days of winning streak. The sell-off aggravated at the penultimate hours led Bank Nifty to plunge below the 44000 mark, with a cut of 0.63 percent.

Technically, a strong sense of tentativeness could be seen at the higher levels that led the index to retreat at the lower band of the support zone. As far as levels are concerned, strong nearby support is placed around 43800-43700, and sustenance above the same could be seen as a last ray of hope for the positive momentum to continue. While on the contrary, 44300-44400 is likely to be seen as the immediate hurdle in the comparable period.

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