We at GEPL Capital were of the opinion that the level of 5348 would serve as a make or break level for Nifty. This week it did manage to respect the support on a closing basis and we have a seen couple of positive sessions in a row towards the end of the week. Nifty is now placed at 5476. However for a confirmation of further uptrend we need a decisive breach of 5520. Till the time Nifty trades below 5520 the trend continues to remain decisively weak and we remain circumspect of the prospects of further gains. Immediate support level is now placed at 5425, whereas the critical support remains at 5348. A decisive breach of 5348 can trigger a further sell off which can bring it down back to Feb 2011 low of 5177 in next few sessions.
We continue to recommend a cautious approach for any long positions as long as Nifty trades below 5520. In an alternate scenario, a decisive breach of 5520 can avert a sell off situation and we may then explore further bullish possibilities if Nifty does manages to sustain above 5520, however in the absence of such a trigger we continue to maintain a bearish view.