RBI Rate Cut Boosts Markets: Nifty Targets 26,440, Bank Nifty Turns Strongly Bullish
India’s benchmark indices ended in the green on Friday after the Reserve Bank of India (RBI) announced a 25 bps policy rate cut along with liquidity measures to support economic growth amid pressure from heightened US tariffs.
The Sensex climbed 447.05 points (0.52%) to close at 85,712.37, while the Nifty surged 152.70 points (0.59%) to finish at 26,186.45.
The rate cut lifted market sentiment sharply, with analysts predicting further upside if key support levels hold.
Nifty Outlook: Could Touch 26,440 if Key Support Stays Intact
Experts noted that the Nifty’s strong reaction post-policy announcement pushed it above important technical levels, suggesting renewed upside momentum.
Key Insights:
- Support: 26,060–26,000
- Short-term Targets: 26,300 → 26,440
- Indicators: RSI has turned bullish; index remains above 21-day EMA
- Pattern: Breakout from consolidation on hourly charts
Rupak De of LKP Securities said the RSI reclaiming a bullish crossover indicates strength, with potential for the index to move towards the 26,300–26,440 zone.
Bank Nifty Forms Bullish Candlestick After Rate Cut
The Bank Nifty also saw strong buying interest, forming a long bullish candlestick and reclaiming its 10-day SMA.
Technical View:
- Resistance: Around 60,000
- Support: 59,250
- Trend: Positive, though RSI has not confirmed a bullish crossover yet
Analyst Vatsal Bhuva stated that despite a positive trend, Bank Nifty may face resistance near 60,000.
Higher Targets Possible if Resistance Breaks
Sudeep Shah from SBI Securities mentioned that the 26,300–26,350 zone on the Nifty aligns with a past swing high and will be crucial.
A sustained move above 26,350 could open the door to:
- 26,500
- 26,700
On the downside, the 20-day EMA (26,000–25,950) may offer strong support.
RBI Policy Summary
The RBI’s Monetary Policy Committee, led by Governor Sanjay Malhotra, voted unanimously to:
- Reduce the repo rate to 5.25%
- Maintain a neutral stance, leaving room for further rate easing
Originally published on 24×7-news.com.
