The Nifty 50 experienced a challenging day, wiping out all gains made following the Reserve Bank of India’s rate cut. The index fell by 0.96%, though it recovered somewhat late in the session after reaching a key support level around 25,900.

Traders looking to buy on dips entered the market with a clearly defined risk below this support, aiming for a rally that could push the index to a new all-time high. However, if the price breaks below 25,900, the short-term outlook would turn bearish, potentially leading to a deeper pullback towards the 25,320 level.

Looking ahead, forex traders should closely monitor the Federal Open Market Committee (FOMC) decision scheduled for Wednesday, a pivotal event for global markets. The Federal Reserve is widely expected to maintain a neutral stance and postpone any further action pending new economic data. Nevertheless, there remains a risk of a hawkish stance, which could dampen risk appetite and exert pressure on stock markets.

Original Source: Giuseppe Dellamotta of investinglive.com