It was a rough day for Nifty 50 as the index erased all the post-RBI rate cut gains. The market fell by 0.96% but rebounded late in the session from a key support zone around the 25,900 level.
The dip-buyers stepped in with a defined risk below the support to position for a rally into a new all-time high. If the price were to break below the support, the short-term bias would switch to bearish and we could see a bigger pullback into the 25,320 level next.
Looking ahead, we have the FOMC decision on Wednesday, and that's going to be a key risk event for global markets. The Fed is expected to keep a neutral stance and defer the decision on the next action to economic data. Nonetheless, there's a risk of a hawkish cut which could weigh on risk sentiment and pressure stock markets.
