Technical View: Nifty below 23,600 despite rate cut; resistance at 23,700

The Nifty Midcap index was up marginally, while smallcap index shed 0.3 percent.

The Nifty50 index continued the losing streak on the third straight session on February 7, ending around 23,550 in the volatile session despite RBI as expected cutting the repo rate by 25 basis points.

Despite mixed global cues, the Nifty index opened higher around 23,650 ahead of RBI policy but soon erased all the gains and traded flat in the first half. However, amid extended selling in the second half the index slipped below 23,450, meanwhile last hour buying helped to close at 23,559.95, down 43.40 points or 0.18 percent.

ONGC, ITC, Britannia, SBI, Adani Ports are among the major losers on the Nifty, while gainers are Tata Steel, Bharti Airtel, Trent, JSW Steel, Hindalco.

The Nifty Midcap index was up marginally, while smallcap index shed 0.3 percent.

On the sectoral front, the Nifty metal index rose 2.6 percent, consumer durables added 1 percent and the auto index rose 0.7 percent, while PSU Bank, FMCG, Media, oil & gas down 1 percent each.

"The Nifty remained volatile as the RBI Governor announced the monetary policy. However, the volatility did not push the index below the 21 EMA on the daily timeframe, signifying a positive short-term trend," said Rupak De, Senior Technical Analyst at LKP Securities.

"The trend is likely to remain positive as long as the index stays above 23,450. On the higher end, resistance is placed at 23,700. A decisive move above 23,700 could lead to a rally toward 24,050," he added.

The Bank Nifty index also witnessed volatile trade during the day as it opened higher but slipped below 50,000. However, managed to close at 50,158.85, down 0.44 percent.

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