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The Nifty reached a new all-time high as the RBI Governor announced the monetary policy, surpassing the 21,000 mark, says Rupak De, Senior Technical analyst at LKP Securities.

The RBI Governor maintained the key lending rates at 6.50 per cent, a decision that had already been expected and factored in by the market participants. The upward revision of the real GDP growth projection for 2023-24 is anticipated to have a positive impact on the market.

In the short term, the Nifty might see volatility; only a clear breakout above 21,000 could drive the index towards the range of 21,550-21,700. A critical support level is situated at 20,800, he said.

The market is likely to remain in a range in the near-term. A consolidation around the present levels is likely before the next phase of the rally begins, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The undercurrents in the economy indicate a robust economy capable of sustaining the current trend of earnings growth into FY 25. Leading indicators like power demand, housing demand, credit growth and revival of rural demand suggest a resilient economy which can keep the market buoyant, restrained only by valuations, he said.

Fairly valued segments like banking may be accumulated on dips.

Falling crude is positive for paints, tyres and aviation where demand continues to be robust, he added.