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Chances are the Nifty would march ahead even today and test the strong supply zone between 5340 and 5360. This is the range where the bears would try their level best to thwart any move by the bulls to gain total control of the market. Once this range is decisively conquered the bulls would try and take out the coveted mark of 5400 as well. Most likely, they will succeed in doing so sooner than later.

On the downside, the first significant support below 5300 is just at the doorstep: it is at 5296. In fact, the range between 5296 and 5275 is the most crucial support area where fresh buying is likely to resurface if the Nifty were to go down to such levels.

The current Put-Call ratio for the Nifty favors the bulls and the Nifty VIX at just above 20 also does not pose much of a problem. The FIIs buying in both cash and futures markets augurs well for the bulls. The international cues this morning are also pretty much favorable as most of the Asian markets are also up—Japan leading the show with over 2% gain and the SGX Apr Nifty is at 5336 with moderately good volume.

We think crossing the 5400-mark by the Nifty is just a matter of time, Reliance net profits figure below Rs 150 from market expectation notwithstanding. Buying is likely to come at lower levels in that stock.

We are looking at 5480 for the Nifty over the next couple of weeks, this becomes a high probability target once 5400 is taken out.

Rajat K. Bose