As we have seen a correction has started in Nifty after Budget 2012 in march and Nifty has performed in lower top lower bottom formation pattern. As it couldn't take off 5400 level and meanwhile it has getting a strong support around 5180-5200 levels and still be able to manage above it on a closing basis.

Optimism has seen in Bank Index, due to the euphoria related to RBI credit policy meet today. It helped Nifty to stay above 5200 till now.

What can be happen now?

According to US & European markets and renewed fear about spain and italy debt yield made headlines to pull markets in corrective mode and increase in volatility to around 20 ( VIX Index ). Also FII inflow has started being negative compared with first 3 months of 2012.

If we put all equations together and think that whether credit policy will cheer markets or no? The simple logical answer is no.

The reason is if credit policy will be positive, the cheer will be short term and traders will take " sell on rise approach" Nobody will think of buying in sentiment driven rally, which probably could fizzle out within a day or two.

So Don't feel optimistic about policy and make cautious approach until nifty comfortably trade above 5400, which is not seems to be possible within a day or two. So "Sell on rise" will be the favorable approach today and tomorrow.