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Our market looks well set for another attempt at Nifty 5400 provided it stays above 5340 during the day’s trading. This is quite a crucial level and it is better maintained if higher levels are to be reached.

Given the positive international cues emanating from Asia and strength that was shown by our market on the last trading session on Friday, April 09, we can think of the Nifty scaling up to 5400 in today’s session only. At least, there would be an attempt to cross the coveted mark.

On the way up, immediately, once the index crosses 5372, its first hurdle would be felt around 5388/89. The only problem or the spanner in the works for the bulls could be the tussle between the insurance regulator IRDA and the securities markets’ regulator SEBI locking horns over ULIP. Since the SEBI has put a ban on several insurance companies selling ULIP policies asking them to register them with it, the thing has set in motion a turf war between the two regulators; unless the issue is resolved soon enough by the government it may affect funds flow from domestic insurers into the domestic equity market. We need to see how things pan out in this case.

Above 5389, the level of 5399 is another significant hurdle to watch out for. Beyond that level will come the supply zone between 5408 and 5419. Further up, the level of 5440 – 5460 would also bring in some supplies.

If there were to be a selling pressure at any time during the day, unless the Nifty falls below 5339 there is nothing much to worry and in any case there is strong support between 5312 and 5296—this range is unlikely to be broken in a hurry even if profit booking sets in.

Rajat K. Bose