Profit taking recommended in long positions - GEPL Capital

It was a day of continued losses for Indian markets as both indices kept falling gradually throughout the day. The NIFTY which opened above the 6,000 mark closed the day below the mark with a 0.50% loss. SENSEX too lost 0.38%. The immediate triggers for markets would be corporate results beginning from 11th January, inflation and IIP data announcements on 11th January and outcome of RBI's policy meet on 29th January.

Asian markets traded flat to positive today. SHANGHAI COMPOSITE closed down 0.03% whereas HANG SENG closed with gains of 0.46%. Street sentiment was somewhat better after the US result season began on an optimistic note. NIKKEI gained 0.67% as the Yen dipped once again after yesterday's gain. There was buzz on the street that the Japanese government is preparing another huge stimulus package and on hopes the Bank of Japan will ease monetary policy again this month. European indices began on a cautious note as the FTSE (0.24%), CAC (0.03%) and DAX (0.00%)all opened flattish to green. German industrial production for November, 2012 is expected to have risen 1% against a 2.6% drop in the previous month. However, UK wage growth slowed to a 21-month low of 0.4% in Q4CY12.

Technical Wrap

Nifty opened positive in the morning but succumbed to selling pressure and finally ended the day with a loss of 30 points at 5971. The level of 5930 is a very important immediate term support. As long as it sustains above 5930 there is a possibility of an upside till 6040 to 6090. We recommend profit taking in Nifty long positions if any upside is seen. The level of 5930 may be placed as a stop loss for existing longs. Any breach of 5930 may drag the Nifty down till 5900 to 5850 range. The level of 5823 has now emerged as a make or break level for Nifty on positional basis.

Source : Equity Bulls

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