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The Reserve Bank of India may delay the expected policy interest rate cuts, but strong demand for bonds from long term investors such as retirement funds and insurers will ensure that market interest rates low, especially for the top rated borrowers.``The fading hope for a deeper policy rate cut will favour the elevated rates in the banking system,'' said Soumyajit Niyogi, Director, India Ratings. ``On the other hand, a strong demand from institutional investors such as insurance, Employees' Provident Fund Organisation will keep bond yields at the lowest, especially for high-rated issuances.''Bond issuances by financial institutions and public financial institutions are expected to gain momentum, while corporate bond issuances will moderate due to general tepid demand in the first quarter of any fiscal, said a report by India Ratings.Strong cash flow and a healthy equity market have been limiting credit demand from corporates hence creating room for other financial entities to tap into multiple financing channels and borrowing at finer rates, the rating agency said. This moderate demand for funding will keep the rates for commercial paper (CP) stable, but elevated due to strong credit demand and tight banking system liquidity.“Sustained pressure on lending rates amid favourable financing conditions in the bond market has been driving bond issuances. While corporate bond issuances are likely to remain modest, issuances by financial institutions and public finance institutions are expected to gain further traction,” said Niyogi.

Nifty on Wednesday ended 17 points lower to form a high wave type candle on the daily chart. The index largely traded sideways and failed to generate any significant directional breakout.The short-term trend of Nifty continues to be up. Further consolidation or minor dip in the market is expected before showing further upmove. A sustainable move above the immediate resistance of 22,300 levels is likely to open the doors for the higher target of 22,600 levels in the near term. Immediate support is at 22,070 level, said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,000 level, implying potential support at this level. On the call side, significant OI concentrations are observed at 22,500 and 22,600 levels, nearing all-time highs.What should traders do? Here’s what analysts said:Rupak De, Senior Technical Analyst, LKP SecuritiesBulls struggled to push Nifty above the 22,250 mark on a closing basis. Sentiment remains subdued as long as it stays below 22,250. A decisive move beyond this level could potentially propel Nifty towards 22,600 and beyond. Conversely, a failure to sustain above 22,200 might invite selling pressure in the market.Osho Krishan, Angel OneThe broader view remains intact with the bullish biases, but it seems really challenging to hold on to higher grounds with conviction. Hence, one is required to have a pragmatic approach of the ‘Buy on dips’ and ‘Sell on the Rise’ until we see a decisive participation of the bulls in carrying momentum. Simultaneously, the resilience of 20 DEMA is expected to act as a daunting task for the bulls in the near period, and an authoritative breach could only dictate the next leg of rally in the index. On the lower end of the spectrum, the support lies around 22,150-22,100, which is expected to cushion any intraday blips, followed by the sacrosanct support at 22,000 mark.Om Mehra, SAMCO SecuritiesNifty is forming an inverted Head and Shoulder pattern on the hourly chart, with the neckline remaining around 22,320; if crossed, expect a potential rally towards the 22,450-22,500 range. On the downside, immediate support is seen at the 22,080 level. The Relative Strength Index (RSI) continues to hover below the 50 mark, signalling short-term weakness in the market. Despite this, the index is likely to maintain its range-bound movement between 22,050 and 22,350 in the near term.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)