After the severe sell of past week Nifty is very precariously poised near a make or break support level of 5348. A decisive breach of 5348 can trigger a further sell off which can bring the Nifty down back to Feb 2011 low of 5177 in next few sessions. We at GEPL Capital continue to recommend a cautious approach for any long positions as long as Nifty trades below 5605, any bounce back attempt may face severe resistance near 5425 and beyond that 5460 appears as a very difficult level to cross. Only sustenance beyond 5460 can bring in further strength in the immediate term. However the trend appears decisively bearish as long as Nifty trade below 5605.
As for stocks Tata Motors as well as GAIL appear weak on the chart for a downside of three to five percent over the course of next eight to ten sessions.