The Reserve Bank of India’s six-member monetary policy committee will announce its policy decision at 2:00pm today, Wednesday- 7th February 2018. After analysing the bond markets, the central bank is surely to hike policy rates-if not today then after the next policy meeting.
Reserve Bank of India’s Monetary Policy is the next big event that financial markets are looking forward to. We are not expecting any further negative surprise in the market due to the policy even if the RBI chooses to hike rates today. Market has already discounted that.
At present market is purely working on the clues from the global markets and technical set up of market is clearly “sell-on-rise”. We firmly believe that the present rally will not last long and traders who are stuck on long side should exit their long position accordingly. According to the charts, NIFTY could rally up to 10800-10900, at the most-which will give the best shorting opportunity. However we are least expecting NIFTY to rally till those levels. If NIFTY closes below 10300 spot levels, we would witness the levels of 10000 within a few days.
Our previous article had indicated that NIFTY has an excellent support at 10300 and yesterday it made a low of 10280 and bounce back sharply. So breaching this level would create further panic in market.