Why Nifty might just survive 5320.

Why Nifty might just survive 5320.
Nifty continued its fall in the last week and now stands at crucial support zone of 5400-5320. As seen in the chart support at 5400-5300 is provided by a long term trendline which has provided support in sever falls, there is a good chance that nifty might bounce from these levels itself. The OI in 5400 puts is significantly greater than 5400 calls implying put writing at 5400 and hence there is strong chance that nifty will try to go abo

ve 5400. If this trendline is broken in the coming days nifty is most likely to test its previous swing low of 5320 odd levels.
If nifty breaks 5300 then it might quickly test 5200 to 5115 as many stop loses will be triggered and traders will look to exit their long positions quickly.
The news flow in past month has been mixed; while the inflation continued to remain high the advance tax number grew by 15% over the same period last year thus signalling better corporate earnings in the coming quarter. RBI has indicated that it will go slow with its rate hiking programme amid global concerns.
Negative news flow also continued with no consensus in EU over the Greece problem, Headline inflation has increased to 9.1% in May from 8.7% in April; also the pause in policy and fiscal reforms is hurting the investment flow and is responsible for markets staying sluggish.
One of the sectors to watch out in the coming days is the Tea sectors as production in Africa is low due to draught; this has led to a rise in the tea prices with global demand staying strong. So investors can keep an eye on tea companies for outperformance.