Equity markets rallied on Wednesday ahead of the RBI policy outcome as investors expect a status quo with easing inflation. We anticipate the price action to take a breather before it resumes its up move. So, investors should avoid initiating fresh longs.The price action in the previous trading session witnessed a sharp pullback after testing the 20 DEMA support. The intraday pullback had enough momentum to bolster the price action to break above the basing pattern over an elongated cup and handle.The following move now opens the room towards the Rs 24,660 level while the support comes in at Rs 21,550.The price action has formed a minor pivotal resistance at its 52-week high at Rs 1747. The price action faces immediate supply near the zone and sees a follow-through on the downside on increasing volume.Hence, going forward fresh longs are best avoided until the mentioned resistance is taken out on a decisive closing basis.

Source: Economic Times June 08, 2023 10:46 UTC