How to play the markets ahead of RBI's policy review

For now, the S&P BSE Sensex is trading well above the 50-DMA and is showing positive sentiment, which is likely to persist for some more time

BSE Sensex: Although the index gave a close above the trend line resistance at 40,140, but could not give a confirmed breakout as per charts. As the Sensex moves up from the current levels, there can be some selling pressure / profit booking, charts suggest. The gap-up range of 38,001 to 38,570 becomes a support, which seems index should retest before rising strongly. The immediate support comes in at 39,350 levels, after which the index can head to 38,500 – 38,900 levels. For now, it is trading well above the 50-DMA and is showing positive sentiment, which is likely to