Equity markets witnessed profitbooking post-RBI's key announcements of MPC meet. RBI extended its accommodative stance, keeping interest rate and repo rate unchanged at 4 percent and 3.35 percent respectively. RBI also revised its growth outlook to 9.5% for FY22, as against 10.5% forecasted earlier. Further, RBI shall also purchase bonds under G-SAP for Rs 1.2 trillion in Q2 FY22. Another key highlight was liquidity support of Rs 15,000 crores for contact intensive sectors like hotels, aviation, restaurants etc.
Nifty 50 closed at 15,670.25 after a volatile trade session and decent recovery in later hours. Sensex slipped by 132 points to close at 52,100. Banks were hit the most post-RBI's meeting outcome while auto, metals and energy were slightly higher. Broader markets continue to gain momentum and outperform benchmarks. Housing finance counters were on a run post-yesterday's surge on announcement of new rental law while on the other hand entertainment stocks also witnessed some respite post RBI's meeting outcome. After witnessing late intra-day recovery from losses, Nifty looks to maintain its momentum in upward direction and higher levels to look out shall be 15,800 and 16,000. Key support levels for the near term remain at 15,500 and 15,300, said Mohit Nigam, Head,PMS - Hem Securities.
On the technical front, the Index has been trading in a rising wedge formation and tested the lower bottom of the formation, which suggests upside movement in the index, said Sumeet Bagadia, Executive Director, Choice Broking. Furthermore, Index has taken the support from 21HMA and formed a hammer candlestick formation in the hourly chart which points out strength in the counter. Daily Momentum Indicator MACD is also trading with a positive crossover as well as above the zero level, which suggests a bull-run for upcoming sessions. At present, the nifty seems to have resistance at 15750 levels while an immediate support comes at 15,450 levels, he added.
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said expectation of normal monsoon, accommodative stance by RBI, decline in fresh COVID cases in India, gradual easing of lockdown restriction and positive global cues would likely lend support to the market in the near-term.