Interest Rate Sensitives drop on RBI's caution - Nirmal Bang

Indian equities settled sharply lower on Wednesday as interest rate sensitive sectors dropped after the RBI Governor D Subbarao cautioned that inflation still at high tempering expectations of interest rate cuts.

At the close, the benchmark 30-share index, BSE Sensex declined 169.19 points or 0.85% at 19,817.63 with 24 components registering drop. Meanwhile, the broad based NSE Nifty fell by 54.75 points or 0.90% at 6,001.85 with 41 components registering drop.

Nifty Technical Outlook

Nifty declined below the crucial levels of 6,020 and closed below it. The index faces crucial hurdles at 6,050 & 6,080 levels on the upside and on a decisive close above expect rise to 6,150 & 6,200 levels.

Action: Nifty has an immediate resistance at 6,080 on the upside; and on a decisive close above expect rise to 6,150 & 6,200 levels

The Bank Nifty has closed below the important support of 12,700 levels; expect declines to the 12,550 & 12,500 levels. There is a strong resistance at 12,680 & 12,700 levels on the upside where selling pressure is expected.

Source : Equity Bulls

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