All Indians are busy planning their vacation for next week diwali but vacation for investors would all depend on Mr. RBI. Tomorrow we have a monetary policy and markets is all waiting for the results. Most of them expect 25bps hike in repo rate and 25bps in MSF which is already discounted in the market. A change in either rate and we could see a volatile session tomorrow. Technically as we had been mentioning in the last few updates that we are expecting a correction but not more than 6030 and tomorrow could be the day. A small narrow channel has been dipping downwards since last week. All the indicators are at the verge of support and nifty’s upcoming movement would be crucial for us. It is sitting on the Moving average which we consider to be strong support. According to retracement and tiny gap 6020-6045 is a spot were risk taking buyers should go long tomorrow. We expect expiry to be around 6200.
Our recommendation: Risk traders should go long at 6040 and safe traders should wait for a confirmation.