The level of 5940 continues to remain a make or break support for Nifty - GEPL Capital

The Sensex and the Nifty zoomed today riding on the back of the price spiral witnessed by Reliance Industries' shares and that of the oil marketing companies, which hit a fresh 52-week high after the OMCs were given the freedom to make 'small corrections' in diesel prices. Sensex gained 146.40 points (0.74per cent) at 19964.03, while the Nifty was up 37.35 points (0.62 per cent) at 6039.20.Shares in oil market companies-HPCL,IOC and BPCL saw strong buying interest after petroleum minister M Veerappa Moily announced a go ahead for oil marketing companies to raise diesel prices. Currently state run refiners sell diesel at a loss of Rs. 9.28 per litre, which is the most consumed fuel in India . IT pack lead gains after slew of upbeat quarterly results by sector heavy-weights raised hopes of growth recovery in the beleaguered technology sector. The oil and gas and realty indices had gained more than 2 per cent in the afternoon session, while the technology, IT and PSU indices were up more than one per cent. The auto, metals and consumer durables indices were up under one per cent, while banking, healthcare and capital goods were trading in negative territory.

Globally, Asian markets dropped ahead of key Chinese economic data including fourth-quarter GDP, December industrial output, retail sales and house price on Friday, which will offer clues on the health of Asia's biggest economy.

Hong Kong shares slipped 17.23 points(0.07%) down at 23339.76 to a 3rd straight loss on Thursday as investors took profits on growth sensitive counters ahead of a slew of Chinese economic data due on Friday. NIKKEI finished at 9.20 points higher ie at 10609.64,erasing earlier losses as the yen's climb faltered after a Japanese minister reportedly said his comments on the unit's value had been misinterpreted.The Asian markets are trading positive as better-than-expected US earnings lifted sentiment, but concerns over the global economic outlook and US fiscal problem capped markets.

Technical Wrap

Nifty ended the day with a gain of 37 points at 6039. We had recommended an exit from pending long positions on any rise and had also cautioned against fresh longs. The level of 5940 is now an immediate important support and the same may be placed as a stop loss for any existing long positions.

Any breach of 5940 may drag the Nifty down till 5900 to 5850 range. On the higher side the level of 6070 would now serve as a resistance for Nifty. We maintain a view of profit taking and advice against creating any fresh longs.

Source : Equity Bulls

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