Nifty opened gap down today at 7725 near our second support zone of 7722 - 7707 and made a low of 7691 before recovering sharply with the RBI policy being announced and went on to cross both our upper resistance levels mentioned and tested our extreme volatility resistance levels of 7913 - 7973 given yesterday
Today RBI's monetary policy was a pleasant surprise for the market as the Repo rate was reduced by 50 basis points against a 25 basis point expectation which triggered the recovery from the days low and the Nifty moved higher by nearly 235 points from the days low . It corrected towards the end of the session today by nearly 100 points from the days high with some profit booking coming in at higher levels to finally close at 7843 which is not a very bullish close considering the mega event went beyond the market expectations
Levels for tomorrow are
Nifty Spot
Long above 7859 for 7902 – 7924 – 7940 , SL 7827
Short below 7827 for 7779 – 7763 – 7747 , SL 7859
Bank Nifty Spot
Long above 17384 for 17463 – 17566 – 17669 , SL 17179
Short below 17179 for 17099 – 16996 – 16894 , SL 17384
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