Caution reigned yesterday ahead of RBI Credit Policy Announcement today as the Markets remained in corrective mode and ended the day with net loss of 43.80 points or 0.71%.

Today, expect the Markets to open on a flat note and look for directions. Today, until the RBI comes up with announcements, the session is likely to remain quite range bound and shall give reactions after that.

For today, the levels of 6160 and 6190 would act as immediate resistance levels on the upside and the supports exist at 6075 and 6030.

The RSI--Relative Strength Index on the Daily Chart is 57.7877 and it is neutral as it shows no bullish or bearish divergence or any kind of failure swings. The Daily MACD has turned bearish as it now trades below its signal line as it has reported a negative crossover. 

The Markets remain poised at a very critical juncture. Today, the session would also remain dominated with rollover centric activities. Along with that, the Markets have made 6230-6250 levels its immediate top and have formed themselves in a way that they can trade in a very broad trading range. However, given today's RBI Policy, the Markets have discounted a rate hike of up to 25bps. Anything above this would have the Markets react very negatively to that. On the other hands, if the rates remain unchanged, which is not much likely, it would be a positive surprise for the Markets with any rate cut being absolutely not expected.

Overall, amidst such scenario, we continue to advise to remain moderate to light on the positions and avoid any agressive positions on either side.Shorts are not advised as there is no structural breach on the Charts. Downsides, if any, should be effectively utilized to make fresh purchases. Positive caution is advised for today.

Milan Vaishnav,
Consulting Technical Analyst,