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Subscribe to enjoy similar stories. On Friday, the much-awaited Reserve Bank of India (RBI) policy did not significantly impact the trends. RBI cut repo rate by 25 basis points (bps) to 6.25%, marking the first rate reduction in nearly five years.

Despite this policy shift, the benchmark indices remained flat, with the Nifty declining 0.18% and the Sensex falling 0.25%. The rate cut was largely priced in by the markets. We have been mentioning that a “sell on rally approach" needs to be considered since we are looking at the need to factor that in an event-driven week, the possibility of a trend to sustain becomes difficult.

The trends followed suit. The inability to retain the bullish resolve is now hurting Nifty and acting as an impediment to sustaining the strong upward drive. The volatile scenario continues to hamper the trends as they are currently taking a breather in the recent moves.

The sudden intraday collapse is attracting some bearishness. Currently, overall momentum and sentiment are buoyant, but the unexpected stretch of positive vibe has begun attracting some hesitation. The inability of macro news triggers to generate some momentum in the broader indices over the last three days has seen indices retrace and has led to some stock-specific action.

However, the bullish camp has revived the bullish bias despite the minor hiccups. However, looking at the weekly timeframe, we can conclude that the dip into the important support region that we observed at around 23500 was tested and revived quite swiftly. Hence, going into the next week, the trends will remain upwardly poised with an eye on 23500 as a support zone and 23800 is the resistance zone for the day.