Market Scenario 24/08/12

The markets started on a sedate note to touch day’s high of 5448.20. The markets have been -moving in a highly volatile way to close the day with Nifty closing at 5415.35 - a gain of 2.50 points.

The market breadth was positive with the gainers including Cairn, Ranbaxy, TCS, Wipro and Hind Unilever while losers included Reliance Infra, Reliance, M&M, Power Grid and L&T.

Perhaps, markets are expecting some positive announcements from the Govt in the days to come. In the meanwhile, the global liquidity has been the driving force behind the current strength in the markets.

Technical Analysis: The Nifty touched a high of 5415.35 gaining a modest 2.5 points over previous day. On the higher side 5450 and 5500 are the strong resistance levels while on the lower side 5400 and 5350 are the strong support levels.

Suggested Strategy: The markets are moving in an extremely narrow range. The markets are waiting for some policy reform from the Govt. Till such time, markets may move in a narrow band. Buy on declines should be the strategy.

Market Scenario 23/08/12

The markets closed with moderate declines today with realty and power being the worst performers. Banking, healthcare and auto made some gains.

The market breadth was negative with advances at 653 against declines of 788 on the NSE. The top Nifty gainers were Ranbaxy, BPCL, Bank of Baroda and Infosys while losers included Bharti Airtel, IDFC, Sesa Goa and NTPC.

Markets are moving in a narrow band and not giving a clear cut direction. However, the market trend seems to be biased on the upside.

Technical Analysis: The Sensex closed at 17847, down 38 points from its previous close, and the Nifty shut shop at 5413, down 8 points. On the higher side 5450 and 5500 are the strong resistance levels while on the lower side 5400 and 5350 are the strong support levels.

Suggested Strategy: The markets moved in an extremely narrow range. However, some mid cap stocks scaled new heights. This is a stock pickers market. Pick sound stocks with a view to book profits at higher levels. Buy on dips should be the strategy.

Market Scenario 22/08/12

Yesterday was a good day of trade on Dalal Street as the Nifty managed to cross its resistance level of 5400 and gave a closing above it, for the first time since March 16. Banks, IT, cements and power stocks saw strong buying interest.

The market breadth was positive with advances at 798 against declines of 634 on the NSE. Top Nifty gainers were Sterlite Industries, DLF and Sesa Goa while losers included Bharti Airtel, Cairn India, and PNB.

Since, the markets have crossed the key 5400 level, markets may make a move on the upside.

Technical Analysis: Sensex shut shop at 17885, up 194 points and Nifty at 5421, up 54 points from the previous close. On the higher side 5450 and 5500 are the strong resistance levels while on the lower side 5400 and 5350 are the strong support levels.

Suggested Strategy: The markets have finally crossed the crucial 5400 level and the trend may take the markets further up. Going long would be in order. Try to bank upon large cap stocks.

Market Scenario 21/08/12

The markets closed with moderate gains during the week, all sectoral indices closed in the positive except power and metal stocks. The top Nifty gainers during the week were Ranbaxy and RIL while the biggest losers included Hindalco, BPCL and Ambuja Cements. In fact, Reliance Industries and IDFC were the star performers during the week. Interestingly, the Reliance counter came out of long hibernation recently.

On Friday last, the markets lost all the gains of morning session and closed flat at the end. FMCG, IT, auto and consumer durables were the top gainers while realty, power and metal tried to drag the indices down. The top Nifty gainers on Friday were Tata Motors and Wipro while the biggest losers included Jindal Steel, Tata Power and Hindalco.

A few Hyderabad based companies came out with results. Visaka Industries declared highly encouraging results. However, owing to pledged shares, the counter did not advance further. Other cement companies like Deccan Cements, Sagar Cements and Kakatiya Cements have declared results which were below market expectations. Interestingly, all these three companies are quoting much below their book value.

The markets initially showed strength. But subsequently gave way to bearish sentiment following CAGs report on Coal Block dealings. The bullish undertone was replaced with bearish sentiment at the closing of the session on Friday. Buy on declines should be the strategy. The market bias is on the upside.

It would be advisable to watch the global cues, crude oil prices and the rupee-dollar fluctuations. Because, the future course of markets depend on these indicators. Another factor to be watched is the progress of monsoon which as per current indicators is deficient. In the current scenario, it is advisable to wait and watch before taking a decisive action. The keyword would be to trade light and trade smart.

Technical Analysis: The Sensex closed at 17691, recording a gain of 34 points from its previous close, and the Nifty closed at 5366, a nominal gain of 3 points. On the higher side 5400 and 5450 are the strong resistance levels while on the lower side 5350 and 5300 are the strong support levels.

Suggested Strategy: The markets initially showed strength. But subsequently gave way to bearish sentiment following CAGs report on Coal Block dealings. The bullish undertone was replaced with bearish sentiment at the closing of the session on Friday. Buy on declines should be the strategy. The market bias is on the upside.

Market Scenario 17/08/12

The markets traded in a narrow range today and closed with moderate declines. FMCG, metal, consumer durables and banking were the biggest laggards in today's session while capital goods, oil & gas and auto gained significantly.

The market breadth was negative with advances at 645 against declines of 798 on the NSE. The top Nifty gainers were IDFC, Hero Motor Corp, Ranbaxy and M&M while losers included ITC, Sterlite Industries, Hindalco and Sesa Goa.

It is better to book profits on the higher side and pick up strong shares on market declines.

Technical Analysis: The Sensex closed at 17657, down 71 points from its previous close, and the Nifty shut shop at 5363, down 17 points. On the higher side Nifty 5400 and 5450 are the strong resistance levels while on the lower side 5350 and 5300 are the strong support levels.

Suggested Strategy: The markets have gained several points over the last few days. However, the markets are shaky on the higher side. It is better to book profits on the higher side while the lower side may be used to buy fundamentally strong shares.

Market Scenario 16/08/12

The markets gained momentum in the latter half of the day and closed with moderate gains. Banking, oil & gas, metal and auto led the rally and consumer durables and capital goods, too, supported the indices well. Realty, healthcare and power closed negative.

The market breadth was positive with advances at 739 against declines of 693 on the NSE. The top Nifty gainers were Tata Motors, Ranbaxy, IDFC and Tata Steel while losers included Sun Pharma, HDFC, Hindalco and Sterlite Industries.

The markets seem to be expecting something positive from the Govt on policy reforms front. Perhaps, the markets are expecting news which the market men are not aware of. Till such time, keep your fingers crossed.

Technical Analysis: The Sensex closed at 17728, up 95 points from its previous close, and the Nifty shut shop at 5380, up 32 points. On the higher side 5400 is the strong resistance level while on the higher side 5350 is the strong support level.

Suggested Strategy: The markets have closed at the critical resistance level of 3380. Once, this crucial level is crossed, the next resistance level is 3400. If this crucial level is decisively crossed, the markets will be poised for an upward breakout. Observe closely this vital resistance level and take positions accordingly.

Market Scenario 14/08/12

Led by heavyweight counters like HDFC, the markets gained momentum in the last hour of trade and closed with moderate gains. Barring auto, all sectoral indices closed positive with realty, consumer durables, capital goods and power being the best performers. Oil & gas and banking, too, gained significantly.

The market breadth was positive with advances at 784 against declines of 652 on the NSE. The top Nifty gainers were HDFC, DLF, Reliance Infra and Sterlite Industries while losers included Hindalco, Tata Motors, Hero Motor Corp and HUL.

Markets after dilly dallying in the morning, moved up in the closing sessions. Markets are positively biased on the upside.

Technical Analysis: The Sensex closed at 17633, up 76 points from its previous close, and the Nifty shut shop at 5348, up 27 points. On the higher side Nifty 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: The markets moved listless in the first half of the day, however during the second half of the session, the markets moved up signaling that the markets may break out on the upside. However, it is too early to predict the direction of the markets. However, the markets are biased on the upside.