Chart Reading: Indices to watch if RBI goes for a rate cut

The decline in food prices and a cut in fuel costs helped consumer price inflation (CPI) to hit an 18-month low in December. Here's a look at the sectoral indices that may have an impact if the RBI goes for a rate cut.

NIFTY BANK: The index is comfortably trading above the significant averages – 50-day moving average (50-DMA), 100-DMA and 200-DMA, as per the daily chart. The "Golden crossover" of 50-DMA with 200-DMA has further strengthened the positive sentiment. The weekly chart shows a persistent rise in the index from the recent fall of 24,350 in October last year.