The index thus may move on course to further correct to lower supports at 9950 on short-term scale and 9750 on the medium term scale.
Rate sensitive stocks could remain in focus for second day in row after RBI kept rates on hold and adopted a cautious stance. Rise in inflation could well put an end to rate cut cycle, fear experts. Indian economy is not out of woods and a are cut could be helpful in boosting growth.
The Nifty formed a bearish candle on the daily charts. Formation of a bearish candle after a Doji pattern clearly gives an advantage to the bears but a small technical bounce back could be on cards. Both MACD as well as Supertrend indicators are in ‘sell’ mode and if Nifty breaks below 10,030 then decline towards 9850 is possible.