Following the three-day meeting of the Monetary Policy Committee (MPC) appointed by the Reserve Bank of India (RBI), a decision was made to keep the key repo rate at 5.25 percent. Furthermore, RBI Governor Sanjay Malhotra announced the maintenance of a neutral policy. The rates for the Savings Deposit Facility (SDF) and Marginal Standing Facility (MSF) remained unchanged—5 percent and 5.5 percent, respectively.
After this announcement, sectors sensitive to interest rates became among the main winners in Wednesday's trading. Specifically, the Nifty Realty index rose by almost 3 percent, and the Nifty Auto index increased by more than 1 percent.
Analysts' Forecasts
Analysts believe that the probability of an interest rate hike in the near future has decreased, unless there is a sharp surge in inflation. Samir Sawant, Research Analyst at Mirae Asset Sharekhan, stated: 'We believe that the chances of an immediate rate hike have diminished. Nevertheless, considering the uncertainty of geopolitical risks and monsoon-related risks noted by the MPC, we think that the RBI will monitor closely, and a rate hike cannot be entirely ruled out if inflation significantly exceeds expectations in the second half of the financial year 27.'
This analyst believes that for now, stable rates should support the visibility of Net Interest Margin (NIM) in banks, Non-Banking Financial Companies (NBFCs), and other rate-sensitive sectors.
Technical Index Forecast
Based on this backdrop, Jatin Gedia, Vice President of Technical Research at Teji Mandi Investment Technologies Pvt Ltd, presented a technical overview of the Nifty Auto, Bank Nifty, and Nifty Realty indices.
Bank Nifty
The current level of Bank Nifty is 57,700. Jatin Gedia notes that over the last six weeks, Bank Nifty has consolidated in the range between 58,500 and 56,500. He adds that the narrowing of Bollinger Bands indicates sideways price movement within the range of 57,100 (20-day moving average) to 58,500, which is the previous fluctuation high. Gedia believes that the overall trend remains positive, and the current consolidation phase is a short-term pause in the upward movement.
As a trading strategy, the analyst advises traders to look for buying opportunities when prices fall near the support zone of 57,100–57,000 for subsequent growth towards the upper limit of the range (58,500). He warns that the bullish structure will weaken if the index falls below 56,500.
Nifty Auto
The current level of Nifty Auto is 29,340. Gedia emphasizes that Nifty Auto has shown steady growth after breaking through resistance zones of 27,500–27,700. Currently, the index has surpassed the historical high for January 2026, which was 29,180, indicating further growth potential and continuation of positive momentum towards 30,400, which corresponds to the upper monthly Bollinger Band, according to the analyst. Additionally, the support zone has shifted higher, settling in the range of 28,500–28,300.
Nifty Realty
The current level of Nifty Realty is 907.



