RBI's policy reaction - Mr. Mustafa Nadeem, CEO, Epic Research

In its first credit policy of the year and since demonetization RBI kept the repo rates unchanged as it is though a transition period where it is seeing the effects of demonetization. It has maintained this stance for second consecutive meet since it is waiting to rollout complete policy measures after March 17 where it will see more ripples effect of Demonetization.

Bank Nifty and other broader indices responded fairly well with them finding support at initial support levels which were established two days back in a correction mode. Bank Nifty still looks good with a buy on dips strategy towards 20800 while Nifty is seeing momentum towards 8890 - 8920 based on OI data.

Source : Equity Bulls

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