Level of 6140 is now the next key resistance for Nifty - GEPL Capital

The street welcomed INFOSYS' (+4.82%) Q2FY14 numbers and cheered its 10% revenue guidance for FY14. Though INFOSYS remained volatile throughout the trading session, it touched its lifetime high and propped up other IT stocks as well. No wonder then that the BSE IT (+3.12%) was the best performing sectoral index yesterday. Street will closely watch TCS' numbers on Tuesday to confirm windfall gains for IT sector from INR depreciation. IIP numbers for August, 2013 will be announced later in the evening. Bloomberg estimates are for 2.2% versus 2.6% in July, 2013. Beginning Monday, we would have the result season in full swing; that will decide future course for the market. Also we have WPI and CPI data set to be announced on Monday. Metal stocks took it on their chin with the BSE METAL index losing 1.49%. INR appreciated to its highest level in two months due to fund inflows. NIFTY and SENSEX both ended the day 1.25% higher.

Nifty edged higher for yet another session and concluded the yesterday at 6096 with a gain of 1.25% forming a hanging man pattern on the daily chart. The pattern near the resistance of 6140 indicates that the bullish trend may be losing momentum, however a confirmation of a reversal would come in only on a breach of 6046 or better still 5979. A breach of 5979 would indicate a reversal in trend and may open the way for downside till 5900 initially and below that 5700 is a possibility. On the higher side now the level of 6140 would act as a resistance for the index.

Source : Equity Bulls

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