Nifty may find support near 5680 in case of a decline - GEPL Capital

The world's pain has indeed proved to be India's gain as Indian indices continued to move northwards bolstered by lower crude, gold and silver prices and most importantly some cooling off of WPI. Based on these factors, the NIFTY rallied 3.38% for the week even as major markets across the world were trading with losses or were flattish; viz., FTSE100 (+0.69%), SSE (-1.24%), HANG SENG (2.28%).Consensus is getting built up in the market for a 25 bps rate cut by the RBI on 3rd May, 2013. Robust results by TCS and HCL confirmed the fact that Indian IT sector is very much in the pink of health and problems could be restricted to Infosys. However, BSE IT was the only broad index in the red thursday (-0.37%) due to an appreciating Rupee.

After a dull opening Nifty inched higher throughout the session and finally ended the day with a gain of 1.66% at 5783. We had advised profit taking near the range of 5700 to 5750 as the entire range was a resistance zone for the index. Though Nifty did manage to scale past 5750, we maintain a view of profit taking and a possibility of a decline till 5700 to 5680 range which is a support zone for the immediate term.

If Nifty corrects till 5700 - 5680 and stabilizes above the positional support of 5600 then there is a possibility of further upside till 5840 over the coming days. Any breach of 5600 would however negate the present bounce back and resume the medium term downtrend.

Source : Equity Bulls

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