Break out above 5610 awaited for confirmation of further upside in Nifty - GEPL Capital

The market traded firmly after March inflation data came in at 5.96 percent, much lower than estimates. This is the lowest data in last 40 months. Rate sensitive stocks banks, auto and infra companies are seeing buying interest. The Sensex is up 115.24 points at 18357.8 and the Nifty is up 39.85 points at 5568.4.

Shares in Hong Kong and Shanghai tumbled on Monday after data showed the rate of growth in the Chinese economy slowed in the first three months of the year.China's economic growth slowed to 7.7% in the first quarter, from 7.9% in the final quarter of 2013.The benchmark Hang Seng Index fell 1.43 percent, to end at 21,772.67 Chinese shares closed down 1.13 percent. The benchmark Shanghai Composite Index slid 1.13 percent to 2,181.94. The Nikkei 225 index at the Tokyo Stock Exchange closed down 209.48 points at 13,275.66.

Nifty ended the day with a gain of 39 points at 5568. It is now placed just midway between confirming a break out beyond 5610 or a break down below 5490. An either side break out would confirm further directional cues. A break out above 5610 would take it higher till 5680 and beyond that 5750 is a possibility. In an alternate scenario if Nifty is unable to clear the resistance of 5610 and instead gives a break down below 5490 then there is a possibility of a decline till 5450 and below that 5394 is also likely.

Source : Equity Bulls

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