A morning walk down Dalal Street | Short-term traders should book profits below 11,043

A lot of volatility but towards the end benchmark indices closed around the same level where they opened which suggests traders preferred taking profits at higher levels.

Last one hour of selling pushed the S&P BSE Sensex below 37000 while Nifty50 also closed below 11100 levels 

The market turned volatile after the announcement of RBIs monetary policy as investors started booking profit from the recent rally. The Nifty rallied from 10581 levels recorded on Jan 29 towards 11000 levels this week which translates into an upside of nearly 5%.

The Monetary Policy Committee (MPC), on expected lines, changed its stance to 'neutral' from 'calibrated tightening' on February 7 in its sixth bi-monthly monetary policy review meeting but what came as a surprise was the repo rate cut of 25 basis points (bps). 

The future commentary suggests that more cuts are in the offing that will be taken positively by traders and investors. Industries like real estate and NBFCs, which are facing severe margin pressures, will benefit from this decision.