"After strong gains, watch if the action sustains above the candle after RBI policy." Index traded volatile around RBI policy. Down 205 pts from initial highs, it later recovered 250 pts, and ended 93 pts or
0.5% higher. Oil&Gas and Realty Index gained 1 to 2%, and the A/D ratio ended on a marginally positive note.
The action formed a Hanging Man, a Hammer-like candle with a longer lower shadow. The lower shadow stands for the late support, which wiped off the initial loss. The high of the candle touches 61.8% of the
preceding fall. Despite which, however, the bias can remain positive if trade sustains above the candle. Subdued otherwise.
Future premium reduces from 17 points to 12
Dip after RBI policy maintains above the falling resistance line Reverse if fails to reach/sustain above 5240-50