The Indian benchmark indices got a boost from the Reserve Bank of India’s surprise 50 basis points rate cut.
The Nifty futures contract opened on a weak note with a huge gap down at 7,720 and fell to a low of 7,705. However, it surged from this low after the RBI’s monetary policy outcome to record a high of 7,849.
Though the contract has come off from this high below 7,800 once again, it is getting support near 7,760. The outlook is bullish. A rise to 7,835 and 7,850 looks likely again. Further break above 7,850 can take the contract higher to 7,900 thereafter.
Traders with a short-term perspective can go long. Stop-loss can be kept at 7,755 for the target of 7,835.
The intraday outlook will turn negative if the contract falls below 7,750. The next targets will be 7,720 and 7,700.
Strategy : Go long with a stop-loss at 7,755
Supports : 7,760, 7,720
Resistances : 7,800, 7,835