Indian equities settle at 2 year high on Monday - Nirmal Bang

Indian equities settled at 2-year high on Monday with Nifty crossing 6,000 mark after P Chidambaram deferred GAAR by 2 years to April 2016 and lower than expected inflation raised hopes for 25 bps rate cut on January 29. IT shares continue to rally led by Infosys's better Q3 numbers and outlook. At the close, the benchmark 30-share index, BSE Sensex gained 242.77 points or 1.23% at 19,906.41 with 20 components posting rise. Meanwhile, the broad based NSE Nifty went up by 72.75 points or 1.22% at 6,024.05 with 34 components registering rise.

Nifty Technical Outlook

Nifty has surpassed the resistance of 5920 and has managed to close slightly above it at 5924 levels. The big white candle near the resistance line on the daily chart is an optimistic sign. However, if Nifty trade above the 6020 then we may see it tests the level of 6150. There is an immediate support at 5920-5940 levels on the downside.

Action: Nifty has an immediate resistance at 5,960 on the upside; expect declines to 5,900 & 5,840 levels.

Bank Nifty

Bank Nifty needs to give confirm the bullish breakout by closing above its recent high of 12,850 levels. The index has managed to breach the crucial hurdles of 12750 and one can expect rise to 13,150 & 13,260 levels. The support resides at 12,650-12,600 levels on the downside.

Source : Equity Bulls

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