A morning walk down Dalal Street: Nifty can march towards 11,450 once 11,390 is taken out

It was a day of consolidation for Indian markets. Sensex pared gains after hitting a record high of 37,711 while Nifty closed below 11,350 at 11,346 on Wednesday.

The 25 bps rate hike by RBI was in line with expectations. 

Now, with 50 bps rate hike in quick succession, experts see the RBI to remain in the pause mode for at least couple of policy meets.

The Federal Reserve upgraded its assessment of the U.S. economy Wednesday but decided to skip another interest rate increase for now.

In a widely expected move, the central bank's policy making Federal Open Market Committee voted unanimously to keep the target range for its benchmark rate at 1.75 percent to 2 percent.

GST collections at Rs 96,483 crore in July, higher than June but still short of Rs 1 lakh-crore mark.

The rally is not over yet. It’s a small pause while the bulls short take over D-Street. 

On the downside, 11,250-11,200 is a key support zone for re-entering on the long side.

Once, Wednesday’s high of 11,390 gets taken out, the index can march towards 11,450 and subsequently to 11,640.