Hot Stocks: Profit booking triggers post RBI monetary policy

The market has seen a stupendous run over the past couple of months without any major correction. Last week, we finally saw some respite to this ongoing optimism.

Traders’ fraternity looked disappointed after the Reserve Bank of India (RBI) maintained its ‘status quo’ stance on its repo rate. This resulted into a decent decline on the following day as well to register the weakest week in the last two months.

Clearly, last week’s tail-end correction was a bit unexpected to us. But, since the outcome from the policy was not on expected lines, such a reaction was evident.

The index is now standing at a crucial juncture and the trend for the forthcoming week would be decided by the price action seen in the first couple of days.

For the Nifty, the sacrosanct support is placed in the zone of 11883 – 11850. In case the Nifty50 slips below it, we may see an extension of profit booking towards 11750 – 11700.

But, by no means, this could be termed as a trend reversal; rather we would construe this as a healthy correction before resuming the uptrend.