Break out above 5660 would indicate further upside till 5700 and beyond - GEPL Capital

The week ended for the Indian markets with a roller coaster ride as the NIFTY swung between red and green several times during the trading session to finally end with a 0.02% cut. The market was almost echoing the chaotic situation in the Parliament which was adjourned for a second straight day. Several bills in the insurance, pension and banking sectors are expected to come up for discussion in the ongoing session, whenever it happens. The new drug pricing, after being given the thumbs up by the Cabinet will now be sent to the Supreme Court. There is still a long way before it gets actually implemented; however, prima facie, it looks to be unfavorable for India pharma companies. The Government finally kick started its disinvestment program by selling stake in Hindustan Copper which was oversubscribed 110%.

Asian stocks ended in the green with the SHANGHAI COMPOSITE ending 0.58% higher as investor confidence just begins to improve on hopes of a pullback in the economy. However, there is still limited appetite for risk taking and investors are preferring to wait on the sidelines till further policy clarity emerges. HANG SENG continued with its persisting rally to end the day 0.79% higher on hopes of a Chinese recovery. NIKKEI was closed today. European markets opened weak but headed higher after data showed that German business confidence climbed to 101.4 in November versus estimates of 99.5.

Technical Wrap

Nifty ended the day almost flat losing 1 point to conclude at 5626. Amongst the sectoral indices the BSE Auto and Oil &Gas indices were the out performers whereas BSE Realty index lost the most.

Nifty ended flat today at 5626. It continues to trade above the support level of 5550 but is still unable to clear the resistance of 5660. A break out beyond 5660 is required for an upside till 5700 to 5710 range. If Nifty manages to sustain above 5700 then we may witness continuation of uptrend in Nifty. Thus the activity of next few sessions assumes high significance. On the downside the level of 5550 is now a crucial support any breach of this support may take the Nifty down to 5465 to 5445 range. One is thus advised to wait for a break out above 5660 or a break down below 5550 for a directional confirmation.

Source : Equity Bulls

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