GEPL Technical view 24th February 2011

After a lackluster opening Nifty traded in a very range bound fashion for the entire session. It succumbed to lot of selling pressure towards close and ended the day with a loss of 31 points at 5437. We continue to maintain a short term bullish stance for Nifty as long as it trades above the level of 5400 as the pattern formed since the beginning of the month has bullish connotations, additionally the risk reward ratio is placed in the favor of bulls at this moment till the time Nifty sustains above 5400. Should it respect that level for a day or two there is a high probability that it may retest the level of 5600 and marginally surpass than by a percentage point or so. A sharp move below 5400 would force us to abandon our bullish view. However we would turn bearish only on a breach of 5330.


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