Nifty formed a Bullish candle along with long shadow on daily chart and continues its formation of higher lows from the last two sessions.
Nifty continued forming higher lows of the last two sessions.
Nifty that was off to a muted start gained momentum and ended nearly a percent higher, after the Reserve Bank of India (RBI) kept the key policy rates unchanged while reiterating an "accommodative stance".
On a day when several states go into polling, the dovish stance of RBI cheered the street as rate sensitives looked up even as several midcap names across sectors saw keen investor interest.
Market is invigorated by RBI’s long-term dovish stance to maintain an easy money policy till the economy reverts to normalcy. A big cheer is the GSec buying program of Rs 1 lakh crore to ensure liquidity and flatten the long-term yields curve. RBI’s decision to maintain its high GDP growth forecast also helped the market to calm down its fears which had increased post the second wave infection and stringent lockdowns.
Nifty has to cross and hold above 14880 to witness a range breakout and an up move towards 15051.
Traders should shift focus to stock specific opportunities as directional trade on the index will emerge only on a close above 14900.
BankNifty opened flattish but witnessed buying interest after hitting an intraday low of 32141 level. Some range-bound move towards the end of the day was witnessed and it settled with gains of around 500 point.
BankNifty formed a Bullish Engulfing pattern on the daily chart and negated its lower highs formation of the last two sessions. It needs to decisively cross and hold above 33000 for an up move towards 33500 and 34000.
All the sectoral indices ended in the green with PSU Bank, IT, metal, auto rose 1-2 percent. Midcap and Smallcap indices rose 0.8-1.3 percent.