Nifty may further correct till 5850 - 5800 - GEPL Capital

Markets ended a weak session of trade in the red on the back of selling pressure witnessed in rate-sensitive sectors. Adding to the pessimism was the statement by the Reserve Bank of India's governor on Thursday after he hinted at upside risks to retail inflation. The Sensex crashed in the last hour of trade and ended down 455 points at 19,760. Nifty slumped 138 points at 5,986.The government today announced Gross Domestic Product data for the fourth quarter and fiscal 2013. Gross Domestic Product grew at 4.8% in the fourth quarter ending March 31, data showed, which was in line with expectations. The manufacturing sector grew at an annual 2.6% during the quarter while farm output rose just 1.4%, the data showed. India's economy grew by 5% in 2012-13, its lowest rate in a decade but in line with an official estimate, data showed.

Hong Kong stocks closed down 0.41 percent at 22,392.16 ahead of key Chinese manufacturing data due to be released on Saturday, with investors wary over China's economic outlook.The Nikkei 225 closed +1.37% at 13,774.54 today after several volatile sessions, but that's not enough to prevent the index from ending May 0.6% lower, its first monthly loss.

Nifty opened weak and ended with a massive loss of 138 points at 5985. It was unable to breach the resistance of 6145 and registered a severe break down below the level of 6000. It now has immediate support placed at 5960. Any breach of this support may induce further sell off till 5850 to 5800 range in a very short span of time. We recommend short selling Nifty or exiting on a bounce till 6040. The stop loss for the recommended trade is 6130. for the downside target of 5850

Source : Equity Bulls

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