Nifty setup: A breakout past 5400 will send stocks soaring

There’s a lot of speculation whether the Nifty will break out past the two-year bearish trend line at round number the 5,400 mark. The exact reading is around 5,380, but 5,400 gives a margin for a false whipsaw, if any.

The next two sessions are very crucial and a weekly close above 5,400 would mean that prices are headed back towards 5,630.
The preferred view remains of a breakout, but we are closely watching for signs of any failure too in which case traders will have to be nimble-footed.

Traders should continue to hold long positions on the 5,400 call.