Santosh Meena, Head of Research at Swastika Investmart
The RBI governor's decision to maintain unchanged policy rates, as widely anticipated, was overshadowed by a notable upward revision in the inflation forecast. Additionally, the implementation of a 10% incremental CRR on the growth in NDL between May 19-July 28 for banks added to the market's unease.
Presently, the market sentiment appears to be largely unaffected by the policy changes. However, the short-term market structure seems to lean towards a sell-on-rise pattern. This is partly due to the global market's nervousness, exacerbated by the jump in crude oil and other commodity prices, posing notable challenges for the Indian market.
Looking ahead, the focal point of market attention is expected to shift toward the impending US inflation figures scheduled for release this evening. There's a discernible risk that the Nifty index might experience a decline toward levels around 19,191 and 18,888 unless it manages to surpass the 20-Day Moving Average (20-DMA) threshold of 19,650.
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