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Below is Post-RBI policy comment from Palka Arora Chopra, Senior Vice President, mastertrust

The Reserve Bank of India's credit policy is in line with expectations, with policy rates raised by 25 basis points and the policy stance remaining unchanged at "Withdrawal of Accommodation." However, there are no signs given by the governor of any pause in upcoming policies. The governor said that they are still alert about inflation despite some relief in global commodity prices.

Nifty continued to oscillate in the broad horizontal band of 17350 to 18150 with a sideways to higher tendency. Prices witnessed a sharp rebound from the vicinity of 200-day SMA last week, making that area stiff to be taken out. As ongoing sentiments are still moderately bullish, every fall close to 17500-17400 will accompany fresh buying. However, a sustainable fall below 17350-17300 can be seen as a short-term bearish reversal for 16900-16800. On the upside, 18150-18270 will act as an immediate supply zone, which if broken decisively will extend such advance for 18450 and then 18650.

Banknifty is likely to consolidate in the range of 39800 to 42050. If prices managed to move above the upper range value then the next resistance aligns near 42700, while a decline close to 40200-40000 will attract fresh buying.

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