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.

Market Scenario 13/08/12

After a range bound and lackluster week the market closed absolutely flat with some cuts seen in the midcap index. Action was more stock specific though the IT pack saw some good gains. Global cues were flat, too. This week's performance was average and the Sensex was up 2.2% while Nifty was up by 2.1%. whereas CNX Midcap index was down by 0.04%.

On last Friday, it was a subdued close to a dull session for the Indian market which saw banks, autos and realty trade under pressure. However, some buying was seen in IT, FMCG and oil & gas stocks in a range bound scenario.

The market breadth was negative with advances at 549 against declines of 878 on the NSE. Top Nifty gainers were BPCL, Maruti Suzuki, and Kotak Mahindra while losers included SBI, Tata Motors and Ranbaxy.

Markets are witnessing alternate bouts of buying and selling and clearly lacking direction. Trade lightly and make swift entry and exits.

Technical Analysis: Sensex closed at 17557, down 3 points and Nifty at 5320, down 2 points from the previous close. On the higher side Nifty 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the crucial support levels.

Suggested Strategy: Markets are moving in an extremely narrow band. Perhaps, markets are expecting some policy announcement from the Govt for making a breakout on the upside. It remains to be seen how the markets will pan out in the days to come. Buy on declines and sell on rallies should be the strategy.

Market Scenario 09/08/12

It was a volatile session in the markets today with both benchmark indices closing flat after hovering both ways. Realty, banking and capital goods were the biggest losers in today's session while auto and metal closed with significant gains.

The market breadth was negative with advances at 582 against declines of 873 on the NSE. The top Nifty gainers were M&M, BPCL, Hindalco and Grasim while losers included Bharti, GAIL, DLF and PNB.

Markets are moving in a zig zag fashion with alternate bouts of ups and downs. The markets have once again become indecisive. Wait and watch for news flow tomorrow and take positions accordingly.

Technical Analysis: The Sensex closed at 17601, down 1 point from its previous close, and the Nifty shut shop at 5338, up 1 point. 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: Contrary to expectations, the markets opened on a mildly positive note. Soon, the markets gathered strength and crossed the 5300 markets. However, at the fag end of the end, the markets gained a mere one point closing flattish. The market sentiment was affected owing to none too encouraging news flow. Wait for the markets to cross the 5350 mark decisively to take positions on the upside.

Market Scenario 08/08/12

The markets gained significantly on the second consecutive day with auto, IT, banking and realty leading the rally. Capital goods, FMCG and power, too, gained significantly while healthcare and oil & gas closed negative.

The market breadth was positive with advances at 785 against declines of 642 on the NSE. The top Nifty gainers were Tata Motors, IDFC, DLF and Ambuja Cements while losers included Cairn India, Hero Motor Corp, Power Grid and BPCL.

Markets seem to be gaining momentum and are positively biased on the upside.

Technical Analysis: The Sensex closed at 17602, up 189 points from its previous close, and the Nifty shut shop at 5337, up 54 points. On the higher side 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: Markets have turned the corner after a prolonged sideways movement. Markets are anticipating some favorable news from the Govt. Since, the Vice Presidential elections are out of the picture, the Govt may now come out with far reaching reforms. Markets are favorably poised for an upward movement.

Market Scenario 07/08/12

Led by Reliance Industries, the markets gained significantly today and barring FMCG and IT, all sectoral indices closed positive. Strong US job data, too, played its role in pulling the indices up. Oil & gas, auto, banking and capital goods were the biggest gainers in today's session and realty and metal, too, supported the indices well.

The market breadth was positive with advances at 903 against declines of 543 on the NSE. The top Nifty gainers were led by Reliance Industries, Tata Motors, JP Associates, and GAIL while losers included BPCL, Wipro, Dr Reddys and TCS.

Markets have received the much needed push from Reliance Industries. However, some policy reforms are needed for making that decisive move upwards.

Technical Analysis: The Sensex closed at 17413, up 215 points from its previous close, and the Nifty shut shop at 5283, up 67 points. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: The markets received a tremendous push from Reliance Industries following likely settlement on the KG Gas Basin. Reliance is expected to move further may be after a small correction. However, markets are awaiting some policy reforms from the Govt for making a decisive break out on the upside.

Market Scenario 06/08/12

The markets gained significantly during the week with power, capital goods and realty leading the rally. Banking, too, supported the indices well. The Sensex was up 2.16% and Nifty gained 2.3% over the week. The top Nifty gainers during the week were NTPC, BHEL, Grasim, and CIPLA.

On last Friday, the markets traded range bound throughout the day and closed with moderate losses. Metal, auto and banking were the biggest losers in today's session and realty and FMCG, too, played their roles in pulling the indices down. IT, oil & gas and healthcare gained significantly.

The market breadth was negative with advances at 577 against declines of 849 on the NSE. The top Nifty gainers were Asian Paints, Wipro, NTPC, and ONGC while losers included Sterlite Industries, Jindal Steel, Tata Steel and IDFC.

Technical Analysis: The Sensex closed at 17198, down 26 points from its previous close, and the Nifty shut shop at 5216, down 12 points. On the higher side Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets closed flattish on reports of deficient rainfall this time around. The weak trend may remain for a few more sessions. Markets are awaiting some positive news to make a breakout on the upside. Trade lightly and swiftly. Caution should be the watch word.

Market Scenario 03/08/12

The markets traded range bound throughout the day and closed with moderate declines. Oil & gas, banking and auto were the biggest losers in today's session while consumer durables, power and capital goods gained significantly.

The market breadth was positive with advances at 789 against declines of 624 on the NSE. The top Nifty gainers were NTPC, BHEL, Axis Bank and SAIL while losers included Cairn India, Tata Motors, BPCL and Tata Power.

The markets have become listless and moving in a very narrow range. Keep booking profits at higher levels.

Technical Analysis: The Sensex closed at 17224, down 33 points from its previous close, and the Nifty shut shop at 5228, down 12 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are moving in an indecisive manner and seem to be waiting for some positive trigger from the Govt. Markets may move in a narrow band till some policy reform measures are announced. Sell on rallies and buy on declines.

Market Scenario 02/08/12

The markets closed with moderate gains today with healthcare, capital goods and realty being the biggest gainers. Metal and oil & gas closed with significant losses.

The market breadth was positive with advances at 947 against declines of 490 on the NSE. The top Nifty gainers were Cipla, Kotak Mahindra Bank, Ambuja Cements and JP Associates while losers included Coal India, ONGC, Sesa Goa and Hero Motor Corp.

Markets are awaiting some positive action from the Govt. Till such time; markets are likely to move in a narrow range.

Technical Analysis: The Sensex closed at 17257, up 21 points from its previous close, and the Nifty shut shop at 5240, up 11 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets have once again turned listless moving in a very narrow band. Markets are expecting some concrete action from the Govt. However, till Vice Presidential elections are over, no major policy action may be forthcoming form the Govt side. Hence, markets may witness alternate bouts of buying and selling. Trade light and be nimble footed.

Market Scenario 01/08/12

The markets made a smart recovery in the afternoon to close with moderate gains and barring consumer durables, banking and power, all sectoral indices closed positive. Oil & gas, realty and metal were the biggest gainers in today's session and IT and healthcare, too, gained significantly.

The market breadth was positive with advances at 741 against declines of 657 on the NSE. The top Nifty gainers were Grasim, ONGC, DLF, and Sterlite Industries while losers included Bharti Airtel, Bank of Baroda, Hero Motor Corp and Jindal Steel.

The markets have temporarily turned the corner and are likely to go up in the coming few sessions.

Technical Analysis: The Sensex closed at 17236, up 92 points from its previous close, and the Nifty shut shop at 5229, up 29 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets have responded favorably to global news and greeted the news positively. Since the RBI was policy on expected lines, the news was already discounted by the markets. The markets may move upwards for the next few sessions.

Market Scenario 31/07/12

The markets made robust gains today with all sectoral indices closing in the green. Realty, power, banking and capital goods were the best performers in today's session and metal, consumer durables and auto, too, closed with substantial upside.

The market breadth was positive with advances at 953 against declines of 491 on the NSE. The top Nifty gainers were Reliance Infra, JP Associates, Cairn India and IDFC while losers included Ambuja Cements, HUL, HCL Tech and ONGC.

Some favorable announcement is expected from the RBI on monetary policy. However, it is to be seen how this is going to pan out today.

Technical Analysis: The Sensex closed at 17144, up 304 points from its previous close, and the Nifty shut shop at 5200, up 100 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5150 and 5100 are the strong support levels.

Suggested Strategy: The markets bounced back with a decent spurt on expectation of favorable monetary policy from RBI today. The RBI policy may be keenly watched for taking further course of action. Cautious optimism should be the watch word. The markets are positively biased.

Market Scenario 30/07/12

The markets lost significantly during the week with FMCG being the only sector that managed to close positive. The Sensex was down 2% and Nifty lost 2.1% over the week. The top Nifty gainers during the week were HCL Tech, Ambuja Cements and HUL while losers included PNB, SAIL, and JP Associates.

On last Friday the markets closed with significant gains with metal, FMCG and IT being the lead gainers. Auto and banking, too, gained significantly while realty, capital goods and healthcare closed with moderate declines.

The top Nifty gainers were Sterlite Industries, Tata Steel, Tata Motors and HDFC Bank while losers included PNB, SBI, Bank of Baroda and JP Associates.

The markets still remain indecisive. Buy at lower levels to take profit at higher levels.

Technical Analysis: The Sensex closed at 16839, up 199 points from its previous close, and the Nifty shut shop at 5100, up 57 points. On the higher side Nifty 5150 and 5200 are the strong resistance levels while on the lower side 5050 and 5000 are the strong support levels.

Suggested Strategy: The markets are moving in alternate bouts of buying and selling with the indexing see sawing on the higher side and the lower side. However, the markets trend appears to be downward bias. Buy fundamentally strong shares with a view to book profits at higher levels.

Market Scenario 27/07/12

Weakness in banking took its toll on the markets today with both benchmark indices closing with significant losses. All sectoral indices closed in the red and along with banking, realty, capital goods, IT and metal, too, closed with substantial declines.

The market breadth was negative with advances at 331 against declines of 1133 on the NSE. The top Nifty gainers were Ambuja Cements, NTPC, Bajaj Auto, and Grasim while losers included PNB, DLF, Tata Power and Tata Motors.

In the absence of positive news from the Govt, the markets are heading downwards.

Technical Analysis: The Sensex closed at 16640, down 206 points from its previous close, and the Nifty shut shop at 5043, down 67 points. On the higher side 5050 and 5100 are the strong resistance levels while on the lower side 5000 and 4950 are the strong support levels.

Suggested Strategy: Markets have turned weak and seem to be heading to lower levels. Buy on declines and sell on rallies.

Market Scenario 26/07/12

The markets lost moderately today with metal, consumer durables and power being the worst performers. Capital goods, oil & gas and auto, too, lost significantly while FMCG, healthcare and IT closed with moderate gains.

The market breadth was negative with advances at 460 against declines of 972 on the NSE. The top Nifty gainers were HCL Tech, Ambuja Cements, DLF and ITC while losers included Jindal Steel, SAIL, Reliance Infra and Tata Steel.

The markets may remain listless till some policy reforms are introduced.

Technical Analysis: The Sensex closed at 16846, down 72 points from its previous close, and the Nifty shut shop at 5110, down 19 points. On the higher side 5150 and 5200 are the strong resistance levels while on the lower side 5050 and 500 are the strong support levels.

Suggested Strategy: Markets have turned weak as the expected policy reforms were not forthcoming from the Govt. Market circles expect that the reforms may be posted till the Vice Presidential elections are over next month. Till such time, markets may move in a narrow band. Buy on declines and sell on rallies.

Market Scenario 25/07/12

The markets closed with moderate gains today with FMCG, IT and metal being the lead gainers. Banking, capital goods, realty and power lost significantly.

The market breadth was negative with advances at 675 against declines of 745 on the NSE. The top Nifty gainers were HUL, Ranbaxy, Sterlite Industries and Maruti Suzuki while losers included Wipro, SAIL, L&T and Kotak Mahindra Bank.

Markets have turned indecisive. Markets are expected to move in a narrow range.

Technical Analysis: The Sensex closed at 16918, up 41 points from its previous close, and the Nifty shut shop at 5128, up 10 points. On the higher side 5150 and 5200 are the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets have turned weak for the last few sessions. The trend is likely to continue for some more time. Markets are likely to move in a narrow band. Buy on declines and sell on rallies would be the ideal strategy.

Market Scenario 24/07/12

The markets closed with significant declines today with metal, infra and capital goods being the worst performers. Europe, too, didn't come to the rescue of the markets and pulled the indices down.

The market breadth was negative with advances at 331 against declines of 1106 on the NSE. The top Nifty gainers were Dr Reddys Lab, Cipla and ONGC while losers included Maruti, JP Associates, Sesa Goa and Sterlite Industries.

Markets are displaying weakness owing to host of factors like rise in inflation, crude oil prices, depreciation of rupee and uncertain political scenario. Markets may move in a narrow range with downward bias.

Technical Analysis: The Sensex closed at 16877, down 281 points from its previous close, and the Nifty shut shop at 5118, down 87 points. On the higher side 5150 and 5200 are the strong resistance levels while 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets are moving in a downward direction owing to uncertainty on the political front, depreciation of rupee, high level of inflation and rise in crude oil prices. The trend may continue for some more time. Buy on declines and sell on rallies should be the strategy.

Market Scenario 23/07/12

The markets remained sluggish during the week and closed with moderate declines. The Sensex was down 0.3% and Nifty lost 0.6% over the week.

The top Nifty gainers during the week were Bajaj Auto, Cairn India, Bharti Airtel, and Coal India while losers included Kotak Mahindra Bank, Tata Motors, and Reliance Infra.

On Friday, the markets closed with significant declines with banking, capital goods, realty and power being the worst performers. Healthcare and oil & gas, too, lost significantly while auto and metal closed positive. The top Nifty gainers were Bajaj Auto, Maruti Suzuki, Asian Paints and TCS while losers included BHEL, Kotak Mahindra Bank, Dr Reddys and IDFC.

The sudden resignation of Sharad Pawar and Praful Patel has not taken well by the market men. This episode has once again thrown the markets in to uncertainty. One can only hope that the Govt solves this problem at the earliest.

Technical Analysis: The Sensex closed at 17158, down 120 points from its previous close, and the Nifty shut shop at 5205, down 38 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are waiting for some positive news on the reforms front from the Govt. However, the resignation of Nationalist Congress Party members i.e. Sharad Pawar and Praful Patel from the council of ministers has once again triggered uncertainty on the political front. The much needed reforms may not be forthcoming in the near future. Wait and watch should be the watch word.

Market Scenario 20/07/12

The markets closed positive yesterday with IT, oil & gas and consumer durables being the best performers. Capital goods and power, too, gained significantly and auto remained the only sector that closed negative.

The market breadth was positive with advances at 780 against declines of 660 on the NSE. The top Nifty gainers were Cairn India, BPCL, Infosys and IDFC while losers included Maruti Suzuki, Bank of Baroda, Kotak Mahindra Bank and Bharti Airtel.

Markets are awaiting reforms from the Govt. Till a clear picture emerges on the reforms front, markets are likely to move in a narrow band.

Technical Analysis: The Sensex closed at 17279, up 94 points from its previous close, and the Nifty shut shop at 5243, up 26 points. On the higher side Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are trading in a listless manner. Perhaps, the markets are waiting for key announcements on the reforms front. Till such time, markets may remain range bound. Trade lightly and take profits at higher levels. Buy fundamentally strong shares on markets declines.

Market Scenario 19/07/12

The markets closed with moderate gains yesterday and barring healthcare and oil & gas, all sectoral indices closed positive. Capital goods and metal remained the best performers and auto, too, made significant gains after Bajaj Auto announced its numbers.

Retail sector gained on the back of expectations that some positive move may come from the government on FDI, while PSU banks traded negative.

The market breadth was positive with advances at 721 against declines of 714 on the NSE. The top Nifty gainers were Bajaj Auto, Tata Power, Sesa Goa and Jindal Steel while losers included PNB, Tata Motors, Bank of Baroda and Dr Reddys Lab.

Technical Analysis: The Sensex closed at 17185, up 80 points from its previous close, and the Nifty shut shop at 5216, up 23 points. On the higher side Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are dilly dallying with alternate bouts of selling and buying. This trend may continue for a few more sessions till clear picture emerges on the reforms front. Play lightly and profit booking may be resorted to at higher levels. Sound stocks may be bought on market declines.

Market Scenario 18/07/12

The markets lost all the early gains in the afternoon and closed negative. IT, metal, realty and power were the worst performers in today's session and auto and capital goods, too, lost significantly. Healthcare, consumer durables and oil & gas closed positive.

The market breadth was negative with advances at 507 against declines of 936 on the NSE. The top Nifty gainers were Bharti Airtel, Maruti Suzuki, Dr Reddys and Axis Bank while losers included Tata Steel, TCS, Tata Motors and Jindal Steel.

Markets are moving in a listless manner. The trend may continue for some more time.

Technical Analysis: The Sensex closed at 17103, down 110 points from its previous close, and the Nifty shut shop at 5197, down 30 points. On the higher side 5200 and 5250 are the strong resistance levels while on the lower side 5150 and 5100 are strong support levels.

Suggested Strategy: The markets are moving in a very narrow range. This trend may continue for a few more sessions. However, no decisive break out on either side is visualized in the near term. Keep booking profits at higher levels and buy strong shares on declines.

Market Scenario 16/07/12

The markets closed with significant declines this week with all sectoral indices closing negative. The Sensex was down 1.6% and Nifty also lost 1.6% over the week.

The markets closed flat on Friday with realty, metal and consumer durables being the biggest losers. Power and IT, too, lost significantly and FMCG was the only sector that managed to close in the green.

The top Nifty gainers during the week were ONGC, GAIL, BPCL, and HDFC Bank while losers included Infosys, Wipro, Tata Steel and Jindal Steel.

Owing to forthcoming Presidential elections, policy reforms seem to be kept in abeyance. Once, the event is over, Govt may initiate policy reforms. Till such time, light trading may be done.

Technical Analysis: The Sensex closed at 17214, down 19 points from its previous close, and the Nifty shut shop at 5227, down 8 points. On the higher side Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow range. Perhaps, things may change after the Presidential elections. Markets are waiting from policy reforms from the Govt. Till such time, markets may experience alternate bouts of buying and selling in a narrow band. Buy strong shares on declines and keep booking profits at higher levels. Trade light.

Market Scenario 13/07/12

The markets closed with significant losses today with IT taking severe beating. Tech, consumer durables, auto and capital goods were other sectors that closed with significant declines and oil & gas and realty were the only two sectors that managed to close in the green.

The market breadth was negative with advances at 438 against declines of 986 on the NSE. The top Nifty gainers were JP Associates, ONGC, Hero Motor Corp and GAIL while losers included Infosys, Wipro, Bharti Airtel and IDFC.

The quarterly results of TCS announced after market hours, were better than Infosys and in line with market expectations. The markets may greet the news with cheers. Hence, market may open strong today.

Technical Analysis: The Sensex closed at 17233, down 257 points from its previous close, and the Nifty shut shop at 5235, down 71 points. On the higher side, Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The results of Infosys had adverse effect on the markets with the Nifty sliding by about 70 points. However, TCS results which were announced after the closure of the markets have been in line with market expectations. The markets may open with gap up. The market movements may be watched on a tick by tick basis. Keep booking profits at higher levels. Lower levels may be utilized for accumulating fundamentally strong shares.

Market Scenario 12/07/12

The markets closed with significant declines today and barring capital goods, all sectoral indices closed negative. Realty, auto, metal and oil & gas were the biggest laggards in today's session and FMCG and power, too, lost significantly.

The market breadth was negative with advances at 525 against declines of 925 on the NSE. The top Nifty gainers were L&T, Kotak Mahindra Bank, BPCL and Power Grid while losers included Hindalco, Reliance Infra, Tata Motors and Wipro.

The markets are moving in an indecisive manner. Due to none too encouraging monsoon, rising inflation and high interest rates are preventing the markets from moving ahead.

Technical Analysis: The Sensex closed at 17489, down 129 points from its previous close, and the Nifty shut shop at 5306, down 39 points. On the higher side 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 have once again turned weak on global economic news. On the domestic front, poor monsoon, high inflation are plaguing the markets. In view of forthcoming Presidential election, the markets may remain lack luster. It is better to wait and watch and sit on side lines.

Market Scenario 11/07/12

Taking cues from European markets, both benchmark indices gained significantly today. All sectoral indices closed positive with capital goods, FMCG, banking and auto being the biggest gainers. Metal, realty and power, too, closed with substantial gains.

The market breadth was positive with advances at 953 against declines of 483 on the NSE. The top Nifty gainers were Axis Bank, JP Associates, PNB and Reliance Infra while losers included ACC and Wipro.

Markets have reacted positively to European cues and started moving up. The trend temporarily is biased upside.

Technical Analysis: The Sensex closed at 17618, up 226 points from its previous close, and the Nifty shut shop at 5345, up 70 points. On the higher side 5400 and 5450 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: The markets have come out of narrow groove on the strength of upward movement in the European markets. The market s is likely to grind upwards with intermittent minor corrections. Keep booking profits at higher levels while lower levels may be used to buy strong shares.

Market Scenario 10/07/12

The markets lost significantly today with all sectoral indices closing in the red. Metal, power, auto and realty were the biggest losers in today's session and capital goods and consumer durables, too, lost significantly.

The market breadth was negative with advances at 420 against declines of 1031 on the NSE. The top Nifty gainers were TCS, DLF, Dr Reddys and Hindalco while losers included Reliance Infra, Jindal Steel, JP Associates and Ranbaxy.

The markets are moving a narrow band and displaying lack of direction. The lack luster trading may come to an end after the completion of the Presidential elections. Till such time keep your fingers crossed.

Technical Analysis: The Sensex closed at 17392, down 129 points from its previous close, and the Nifty shut shop at 5275, down 42 points. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow range. The indecisiveness may persist till some positive news emerges on the policy front from the Govt. The trend is likely to continue till Presidential elections are completed. Trade lightly and trade right should be the watch word.

Market Scneario 09/07/12

It was a range bound and volatile week for the Indian market which traded in no particular direction though the bias, as per experts, remain positive. Global uncertainties weighed heavily on the Indian market leading to cautious trade. Banks this week posted the highest level since April 19 though FMCG and oil & gas sectors came under some pressure.

On Friday, The market breadth was negative with advances at 574 against declines of 894 on the NSE. Top Nifty gainers were ICICI Bank, Mahindra & Mahindra and HUL while losers included Jindal Steel & Power, Sesa Goa and Maruti Suzuki.

Markets are expecting some positive news from the Govt. A clear trend is likely to emerge after the Presidential elections are completed.

Technical Analysis: Sensex shut shop at 17521, down 17 points and Nifty at 5316, down 10 points from the previous close. On the higher side 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 are moving in an indecisive manner. Perhaps, the markets are awaiting some policy reforms from the Govt which may not happen till the Presidential elections are over. Till such time, markets may move in a narrow band. Keep booking profits at higher levels while lower levels may be utilized to buy quality stocks.

Market Scenario 05/07/12

The markets traded range bound throughout the day and closed with moderate gains. Metal and realty were the biggest gainers in today's session and capital goods, power and banking, too, made significant gains.

The market breadth was positive with advances at 936 against declines of 513 on the NSE. The top Nifty gainers were Sterlite Industries, Sesa Goa, Jindal Steel, and JP Associates while losers included ONGC, Asian Paints, Dr Reddys and Kotak Mahindra Bank.

The markets are moving in a listless manner with alternate bouts of buying and selling. Look out for positive announcements from the Govt for decisive upward break out.

Technical Analysis: The Sensex closed at 17463, up 37 points from its previous close, and the Nifty shut shop at 5303, up 15 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 are in a consolidation mode after the massive upswing on Friday. The markets are likely to move in a narrow range till some positive news from the Govt. Till such time, the markets are expected to be lack luster and further consolidate. Buy on declines and book profit on rallies. Cautious optimism should be the watch word.

Market Scenario 04/07/12

Real estate, metals and banks help the market close in the green after a lackluster session which saw the indices trade flat for most part of the day yesterday. The range for the day was a mere 40 points with infrastructure keeping the market down.

The market breadth was positive with advances at 893 against declines of 560 on the NSE. Top Nifty gainers were DLF, Bharti Airtel, and Hindalco while losers included BHEL, Jindal Steel & Power and TCS.

The markets are consolidating after seeing an upswing last Friday. This sideways trend may continue for a few more sessions with an upward bias.

Technical Analysis: Sensex shut shop at 17425, up 26 points and Nifty at 5287, up 9 points from the previous close. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow band and appear to be consolidating after strong rally seen on Friday last. The markets may move in a sideways direction for a few more sessions with an upside bias. Buy fundamentally strong shares on declines.

Market Scenario 02/07/12

The markets closed with significant gains last week with all sectoral indices closing positive. The Sensex was up 2.7% and Nifty also gained 2.7% over the week.

The CNX Midcap index closed with 3% gain, BSE Small Cap added 2.2% while the Bank Nifty closed with 3.2% gain. The BSE Metal closed with 4% gain, BSE Oil Gas was up 2.5% and BSE Power closed with 4.75% gain over the week. The BSE Realty was up 2.5%, BSE Healthcare gained 2.5% while BSE Capital Goods closed with 3% gain.

The top Nifty gainers during the week were Tata Power , Jindal Steel, ICICI Bank and Maruti Suzuki while the biggest losers included Cairn India and BPCL. On Friday, the market breadth was positive with advances at 1093 against declines of 379 on the NSE.

On the positive side, slight appreciation of rupee, falling crude oil prices, are encouraging signs. However, high level of inflation continues to be worrisome. On the global level, the sanctioning of bail out of Greece is a good augury. However, the financial problems of Spain and Italy also to be sorted out. Cyprus seems to the new candidate for bail out package.

The expected positive announcement on GAAR has sent the markets in to a tizzy. The market sentiment has improved tremendously. The bulls may take advantage of the strong up move and take position accordingly.

Technical Analysis: The Sensex closed at 17430, up 439 points from its previous close, and the Nifty shut shop at 5279, up 130 points. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: Since the markets have decisively closed above the crucial resistance level of 5250, the market sentiment has improved significantly. At higher levels, profit booking can be expected. Buy on declines and sell on rallies.

Market Scenario 29/06/12

The markets closed with moderate gains today with defensive sectors like FMCG and consumer durables being the biggest gainers. Banking and oil & gas lost significantly while realty and capital goods closed with moderate declines.

The market breadth was positive with advances at 739 against declines of 689 on the NSE. The top Nifty gainers were JP Associates, Tata Steel, ACC and ITC while losers included Sesa Goa, GAIL, IDFC and Sterlite Industries.

As expected, the markets are trading in a narrow range making it difficult even for the seasoned traders to beat the market. Trade light and trade smart.

Technical Analysis: The Sensex closed at 16991, up 23 points from its previous close, and the Nifty shut shop at 5149, up 7 points. On the higher side 5150 and 5200 are the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets are moving in a very narrow bank and waiting for positive news to break out on the upside. More market friendly reforms are expected from the Prime Minister who is currently holding the Finance portfolio. Till some reforms measures are announced, the markets are likely display listless tendencies. However, cautious optimism should be the watch word.

Market Scenario 28/06/12

The markets traded range bound today with metal, power and IT being the biggest gainers. Banking and capital goods, too, made some gains while auto and consumer durables pulled the indices down.

The market breadth was positive with advances at 787 against declines of 618 on the NSE. The top Nifty gainers were Sesa Goa, IDFC, Tata Steel and Tata Power while losers included Tata Motors, Cairn India, Kotak Mahindra Bank and ACC.

The markets moved in a narrow band. The markets remains indecisive. Perhaps, a clear trend may emerge after the Presidential Elections.

Technical Analysis: The Sensex closed at 16968, up 61 points from its previous close, and the Nifty closed at 5142, up 21 points. On the higher side 5150 and 5200 are the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets are indecisive with a positive bias. Markets are waiting for some good news to emerge to break out on the upside. May be, the markets may consolidate till such time. Your strategy should be to trade less but trade right.

Market Scenario 27/06/12

The markets closed with moderate gains yesterday with oil & gas, power, banking and auto being the biggest gainers. Realty and healthcare, too, made substantial gains while consumer durables, FMCG and IT closed negative.

The market breadth was negative with advances at 684 against declines of 731 on the NSE. The top Nifty gainers were GAIL, Grasim, Tata Power and Power Grid while losers included SAIL, HUL, Sesa Goa, Sterlite Industries.

Markets are waiting for a breakout. News flow may be watched carefully for a possible breakout in either direction.

Technical Analysis: The Sensex closed at 16907, up 24 points from its previous close, and the Nifty shut shop at 5121, up 6 points. On the higher side Nifty 5150 and 5200 are the strong resistance levels while 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow band. The markets have turned listless and waiting for a breakout . Market participants may keenly watch the news flow and rupee fluctuations and take position accordingly. Buy on declines and sell on rallies should be the strategy in the next few sessions.

Market Talk

Reliance Industries: The company is planning to dispose of its textile unit with its iconic Vimal brand.

Future Capital Holdings: Warburg Pincus to buy 53.67% stake in the company.

Bajaj Auto: The company's sales during the month of May 12 declined by 2% year on year basis.

Maruti Suzuki: It's May12 sales declined by 5% YoY basis.

TVS Motors: Sales dip by 5% during May 2012.

Mutual Fund: Axis Equity Fund buys IDFC.

GMDC: has reported strong Q4 performance.

Bombay Dyeing: Has come out with good quarterly results.

Dredging Corporation: Reported strong quarterly numbers.

Morgan Stanley: Downgrades Reliance Communications and Idea Cellular while upgrading Reliance Industries.

Bharat Forge: The company's sales have taken a dip in the fourth quarter.

Neyveli: Net profit increased by 9 per cent.

Sundaram Finance: Profits jumped by 38%.

Power Finance Corporation: Profit after tax up 35% in the recently announced results.

Wockhardt: has come out with better than market expectation. The stock was greeted with a thumbs up.

Gail: Hogged the limelight on the news that 4 countries agreed to sign the TAPI pipeline deal.

Strides Arcolabs: Foreign institutional house upgraded the scrip with a potential price target of Rs.1090.

Dishman Pharma: Has come out with encouraging results for the quarter ended March 2012. The company is in the same line of business as Divis Labs.

Ambuja Cement: is considered to be a decent bet for the long term.

Bajaj Auto: has come out with disappointing set of figures for the year ended March 2012.

L&T: Nomura downgraded the company on the grounds of order inflow concerns and margin squeeze. The house has projected a target price of Rs.992.

Jammu & Kashmir Bank: The bank has come out with excellent set of numbers for the quarter ended March 2012. CLSA has upgraded the stock to buy and projected a price of Rs.1090.

BPCL: Bank of America retains its 'Buy' rating on the company.

IRB Infra: There is a talk that the company's CMD clears the polygraph test.

HDFC: declines after US based mutual fund sold several lakh shares of the company.

Tata Motors: As per latest resport, JLR sales are not up to the mark. The share is likely to witness selling pressure.

Thermax: A foreign institutional house has downgraded the stock.

Sterling Holiday Resorts: Rakesh Jhunjhunwala is reported to have been buying the shares from the secondary market.

Moodys Ratings: has down graded the ratings of top three private sector Banks - ICICI Bank, HDFC Bank and Axis Bank.

Videocon Industries: has stated to have stuck oil in its Mozambique operations.

L&T: has come out with highly encouraging results for the quarter ended March 2012. The market men greeted the news with hike in its share price. Foreign brokerage houses have started re-rating the scrip.

Ashok Leyland: has come out with lack lustre performance and the share price was hammered on the bourses.

IVRCL: The company's net fell 85% in FY12. Consequently, the stock plunged around 12%.

Geometric: Rakesh Jhunjhunwala buys 5 lakh shares in the company. The shares were bought at Rs.62.51 each.

Sintex: Citigroup downgrades the stock to sell.

Dabur India: HSBC maintains neutral rating on the stock with a price target of Rs.115.

Colgate Palmolive: There was buzz that a Singapore based fund is accumulating the company's share.

Market Scenario 26/06/12

The markets closed with moderate declines today and barring consumer durables, all sectoral indices closed negative. Banking, power, metal and realty were the worst performers in today's session and auto and IT, too, lost significantly.

The market breadth was positive with advances at 754 against declines of 677 on the NSE. The top Nifty gainers were Cairn India, GAIL, RIL, and Ambuja Cements while losers included Hero Motor Corp, Siemens, Grasim, and Cipla.

Technical Analysis: The Sensex closed at 16882, down 90 points from its previous close, and the Nifty shut shop at 5115, down 31 points. On the higher side Nifty 5150 and 5200 is the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets have not taken kindly to the Govt’s policy initiatives. The markets on expectation went up initially only to retreat in the afternoon. The markets may move in a narrow band. Trade lightly. Buy on declines and sell on rallies should be the watch word for the next few sessions.

Market Scenario 25/06/12

The markets closed with moderate gains last week with healthcare, power and auto being the best performers. The Sensex was up 0.2% and Nifty, too, gained 0.2% over the week. The CNX Midcap index closed with 1.5% gain, BSE Small Cap gained 1% while the Bank Nifty closed with 0.2% loss. The BSE Health Care was up 2.1%, BSE Oil Gas gained 1%, BSE Power closed with 1.7% gain and BSE Auto was up 1.2%. The top Nifty gainers during the week included ONGC, Hero Motor Corp and Reliance Infra while losers included Hindalco, TCS and SAIL.

On the macro economic front, crude oil fell to a low of $80 while the Rupee slid to a new low of Rs.57.30. Due to lower international crude oil prices, the current account deficit may not be as high as it was anticipated which augurs well for the markets.

Since, the Greece elections are out of the scene, it’s now the turn of Spain and Italy to come out of their economic problems. It is to be seen how the Euro zone countries will tackle this problem.

Reliance Industries announced its plans to sell out non profit making textile unit with its iconic Vimal brand. Cement shares hogged the limelight as Competition Commission of India imposed heavy penalties on cement companies for cartelization. However, cement companies may approach the Tribunal for final judgement. This is likely to be a long drawn out legal battle.

The Finance Minister has made an announcement that a slew of market friendly measures would be announced on Monday. If the reforms are positive, then markets are likely to give thumbs up to the reforms and markets may break out on the upside.

However, we need to wait and watch for the event as to how it will unfold on Monday. Till then, keep your fingers crossed.

Technical Analysis: On Friday the Sensex closed at 16972, down 60 points from its previous close, and the Nifty ended at 5146, down 19 points. On the higher side Nifty 5150 and 5200 are the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets are trying to break out of the narrow range. If the Govt comes out with reforms, the markets may break out on the upside. Otherwise, the markets may slowly grind lower. Now all eyes are on Finance Minister to announce some positive news for the markets to perk up. Let’s wait and watch.

Market Scenario 22/06/12

The markets closed with substantial gains today with realty, banking, capital goods and power being the biggest gainers. Oil & gas lost substantially today and consumer durables and IT, too, closed negative.

The market breadth was positive with advances at 912 against declines of 498 on the NSE. The top Nifty gainers were JP Associates, Reliance Infra, DLF and BHEL while losers included Reliance, Cairn India, TCS and Ambuja Cements.

The markets are critically poised and are waiting for some crucial news to break out in a particular direction. Wait and watch.

Technical Analysis: The Sensex closed at 17033, up 136 points from its previous close, and the Nifty shut shop at 5165, up 44 points. On the higher side Nifty 5200 is the strong resistance level while on the lower side 5100 is the strong support level.

Suggested Strategy: Markets are at an indecisive stage. Only the Nifty decisively crosses the 5200 mark, a smart rally can be seen. Carefully watch the markets movements and take position accordingly.

Market Scenario 21/06/12

Bounce back by the cement sector from the lows of the day helped the market close with modest gains following a subdued and range bound session. Volumes were good and sectors that saw positive trade were autos, metals and infra.

The market breadth was positive with advances at 896 against declines of 519 on the NSE. Top Nifty gainers were ACC, Sterlite Industries, HCL Technologies, Tata Motors and Jindal Steel while losers included TCS, Coal India, Bharti Airtel, DLF and Maruti.

The markets are range bound and moving in a narrow range.

Technical Analysis: Sensex shut trade at 16896, up 36 points and Nifty at 5120, up 16 points from the previous close. On the higher side Nifty 5150 and 5200 are the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow range of Nifty 5000 to 5200 points. Hence, crossing 5200 seem to be a stiff resistance level. This narrow range may be used as entry and exit levels till a decisive break out is seen.

Market Scenario 20/06/12

Uncertain global and domestic cues weighed on investor sentiments through today's trade but the market managed to pull back from the lows of the day and close with smart gains. Banks, oil & gas and FMCG lent good support after early weakness though metals proved a bit of a drag.

The market breadth was negative with advances at 689 against declines of 720 on the NSE. Top Nifty gainers were Ambuja Cements, GAIL, Siemens, Reliance and ITC while losers included Sesa Goa, Sterlite Industries, Cairn, PNB and Infosys.

The markets are in short term uptrend.

Technical Analysis: Sensex shut trade at 16859, up 153 points and Nifty at 5103, up 39 points from the previous close. On the higher side 5150 is the strong resistance level while on the lower side 5100 is the strong support level.

Suggested Strategy: The markets have absorbed the RBI’s credit policy. The initial reaction seemed to have been over and the markets are on a short upward move. Sell on rallies and buy on declines should be the strategy.

Market Scenario 19/06/12

It was a disappointing start to the week for the Indian market which opened gap-up but fell sharply after the RBI announced its decision to keep Repo Rate and CRR unchanged.

Rate-sensitives saw unwinding pressure with banks, real estate and auto sectors dragging the indices down. Volumes were extremely high in terms of turnover.

The market breadth was negative with advances at 402 against declines of 1026 on the NSE. Top Nifty gainers included Power Grid, Tata Steel and Bajaj Auto, while losers included DLF, SBI and PNB.

Technical Analysis: Sensex closed at 16705, down 244 points and Nifty at 5064, down 74 points from the previous close. On the higher side Nifty 5100 and 5150 are the strong resistance levels while on the lower side 5050 and 5000 are the strong support levels.

Suggested Strategy: The markets have reacted to RBIs credit policy and may move in side ways direction for a few more sessions. Heavy positions may be taken only after a clear trend is discernible. Light trading is advised with quick entry and exit options.

Market Scenario 14/06/12

The markets traded range bound throughout the day and closed with moderate gains. Capital goods and FMCG were the best performers in today's session while realty, auto, consumer durables and power remained the biggest laggards.

The market breadth was negative with advances at 682 against declines of 720 on the NSE. The top Nifty gainers were HUL, Ambuja Cements, Sun Pharma and L&T while losers included Maruti Suzuki, Sterlite Industries, NTPC and Tata Motors.

The markets movements are highly unpredictable. Hence, cautious optimism should be the watch word.

Technical Analysis: The Sensex closed at 16880, up 18 points from its previous close, and the Nifty shut shop at 5121, up 5 points. On the higher side Nifty 5150 and 5200 will be strong resistance levels while on the lower side 5100 and 5050 will be the strong support levels.

Suggested Strategy: The markets are moving in zig zag fashion with unpredictable movements. It is advisable to trade lightly. The future events like outcome of Greece Elections and RBI monetary policy may be watched and positions taken accordingly.

Market Scenario 13/06/12

The markets closed with substantial gains today and even lower than expected IIP numbers could not dampen investors' sentiments.

Banking, realty, capital goods and auto were the biggest gainers in today's session and consumer durables, power and metal, too, made significant gains. Healthcare was the only sector that closed in the negative.

The market breadth was positive with advances at 753 against declines of 659 on the NSE. The top Nifty gainers were Ambuja Cements, PNB, ACC, and Tata Motors while losers included Wipro, Dr. Reddys, Ranbaxy and Hind Lever.

Technical Analysis: The Sensex closed at 16863, up 195 points from its previous close, and the Nifty shut shop at 5116, up 62 points. On the higher side 5150 and 5200 will be strong resistance levels while on the lower side 5100 and 5050 will be strong support levels.

Suggested Strategy: The markets seem to be in a short uptrend. Ride the trend and keep booking profits at higher levels. Lower levels may be used to pick up fundamentally strong shares for portfolio gains in the medium to long term

Market Scenario 11/06/12

The markets started on a weak note on Friday but on news of likelihood of interest rate cut, the markets responded favorably and started upward movement.

A late rally in the markets enabled the indices to close with significant gains with capital goods, realty, FMCG, power and banking being the lead gainers. IT and tech were the worst performers in Friday’s session and consumer durables and healthcare, too, closed with marginal declines.

The market breadth was negative with advances at 666 against declines of 736 on the NSE. The top Nifty gainers were Reliance Infra, GAIL, Sterlite Industries and L&T while losers included Cairn India, ONGC, Maruti and Power Grid.

Technical Analysis: The Sensex closed at 16719, up 70 points from its previous close, and the Nifty shut shop at 5068, up 19 points. On the higher side Nifty 5100 and 5150 are the strong resistance levels while on the lower side 5050 and 5000 are the strong support levels.

Suggested Strategy: As expected, the markets are on a short upward trend. However, two important events i.e. Greece elections and RBI’s credit policy will determine the future course of action. Keep booking profits at regular intervals. Trade lightly. Fundamentally strong shares may be added to the portfolio on market dips.

Market Scenario 08/06/12

The markets closed with significant gains today with realty, banking, auto and FMCG being the best performers. Other sectors with substantial gains included power, metal and capital goods while consumer durables was the only sector that closed negative.

The market breadth was positive with advances at 824 against declines of 581 on the NSE. The top Nifty gainers were JP Associates, Axis Bank, ICICI Bank and HDFC Bank while losers included Wipro, Powergrid, Ambuja Cement and GAIL.

The markets seem to be in a short uptrend.

Technical Analysis: The Sensex closed at 16649, up 195 points from its previous close, and the Nifty shut shop at 5050, up 53 points. On the higher side 5100 and 5150 are the strong resistance levels while on the lower side 5000 and 4950 are the strong support levels.

Suggested Strategy: After continuous slide, the markets are in a short uptrend. Keep booking profits at higher levels with a view to enter at lower levels.

Market Scenario 07/06/12

The markets had a splendid day yesterday. The markets made robust gains with all sectoral indices closing with substantial upside. Auto, capital goods, power and banking were the biggest gainers in yesterday’s session and FMCG, metal, realty and consumer durables, too, closed with significant gains.

The market breadth was positive with advances at 1146 against declines of 307 on the NSE. The top Nifty gainers were Tata Motors, Hero Motor Corp, Jindal Steel, Reliance Infra while the losers included Cipla, BPCL, Dr. Reddy.

The markets have come into a short term uptrend. Tread carefully. Watch the markets on a hourly basis and take action as per market movements.

Technical Analysis: The Sensex closed at 16454, up 434 points from its previous close, and the Nifty shut shop at 4997, up 134 points. On the higher side 5000 and 5050 are the strong resistance levels while on the lower side 4950 and 4900 are the strong support levels.

Suggested Strategy: Since the markets are on a short term uptrend, avoid short selling for the present. Ride the wave and keep booking profits at higher levels. Cautious optimism should be the watch word.

Market Scenario 06/06/12

The markets gained moderately today with capital goods, banking and power being the lead gainers. Oil &gas, healthcare and IT, too made significant gains while realty, FMCG and consumer durables lost significantly.

The market breadth was positive with advances at 766 against declines of 645 on the NSE. The top Nifty gainers were L&T, Grasim, Reliance Infra, and IDFC while losers included Ambuja Cements, Tata Motors, Siemens, and Bharti Airtel.

Technical Analysis: The Sensex closed at 16021, up 32 points from its previous close, and the Nifty closed at 4863, up 15 points. On the higher side Nifty 4900 is the strong resistance level while on the lower side 4850 and 4800 are the strong support levels.

Suggested Strategy: The markets are moving in sideways direction. However, the markets seem to be awaiting the outcome of events like Greece elections and RBI policy. Trade lightly. Fundamentally strong shares may be added to portfolio with a 12 to 16 months investment horizon.

Market Scenario 05/06/12

The markets recovered significantly from the lows of the day to close with moderate gains. Capital goods, realty, oil & gas and banking were the best performers in yesterday's session while consumer durables, FMCG and metal lost significantly.

The market breadth was negative with advances at 599 against declines of 826 on the NSE. The top Nifty gainers were JP Associates, Siemens, Bank of Baroda, L&T, while t the losers included GAIL, Jindal Steel, Tata Power, and Sesa Goa.

Another notable feature has been that the focus seems to be shifting from consumer related stories to other sectors. Keep a close tab over this trend to identify scrips.

Technical Analysis: The Sensex closed at 15988, up 23 points from its previous close, and the Nifty shut shop at 4848, up 6 points. On the higher side 4850 and 4900 are the strong resistance levels while on the lower side 4800 and 4750 are the strong support levels.

Suggested Strategy: The markets seem to have bounced back on short covering. The sharp upswing in the afternoon has taken the market participants by surprise. The upside correction may continue for some more time. However, this cannot be treated as trend reversal. The suitable strategy should be to wait and watch. Lower levels may be utilized to accumulate fundamentally sound stocks with a long term view.

Market Scenario 04/06/12

The markets lost significantly today with both benchmark indices closing below their psychologically important levels of 16,000 and 4900 respectively. Barring FMCG, all sectoral indices closed negative with capital goods, power, auto and oil & gas being the worst performers. IT, banking, tech and metal, too, lost significantly.

The market breadth was negative with advances at 359 against declines of 1074 on the NSE. The top Nifty gainers were ITC, GAIL, Sun Pharma, and Hindalco while losers included Asian Paints, Cairn India, Siemens and Bank of Baroda.

The markets are displaying listless character. The outcome of Greece elections is awaited.

Technical Analysis: The Sensex closed at 15965, down 253 points from its previous close, and the Nifty shut shop at 4842, down 83 points. On the higher side 4850 and 4900 are the strong resistance levels while on the lower side 4800 and 4750 are the strong resistance levels.

Suggested Strategy: Trade lightly till a clear direction emerges. However, long term investors may start accumulating blue chip shares in small parcels.

Market Scenario 01/06/12

The markets recovered in the last half-an-hour to close with only moderate losses. Auto was the biggest laggard in yesterday's session and banking, consumer durables and capital goods, too, lost significantly. Realty, IT and tech supported the indices well.

The market breadth was negative with advances at 623 against declines of 820 on the NSE. The top Nifty gainers were JP Associates, Asian Paints, IDFC and SAIL while losers included Maruti, ICICI Bank, Tata Motors and Jindal Steel.

The markets remain indecisive. The markets are waiting for the macro and micro economic pictures to be cleared before taking any particular direction.

Technical Analysis: The Sensex closed at 16219, down 94 points from its previous close, and the Nifty shut shop at 4924, down 26 points. On the higher side 4950 and 5000 are the strong resistance levels while on the lower side 4900 and 4850 are the strong support levels.

Suggested Strategy: Since the markets are biased on the down side, it is advisable to take cautious steps while initiating any position. Higher levels may be used to book profits.

Market Scenario 31/05/12

The markets lost significantly on Wednesday with the auto sector taking a beating because of lower than expected numbers from Tata Motors.

Other sectors that closed with sharp declines included consumer durables, realty, banking and capital goods. IT and tech made some gains.

The market breadth was negative with advances at 395 against declines of 1035 on the NSE. The top Nifty gainers were Ambuja Cements, ACC, Maruti and Sun Pharma while losers included Tata Motors, Reliance Infra, IDFC, and BHEL.

The markets may remain listless till a clear cut picture emerges on the Euro Zone front regarding the economic fate of Greece.

Technical Analysis: The Sensex closed at 16312, down 126 points from its previous close, and the Nifty shut shop at 4951, down 39 points. On the h higher side 5000 and 5100 are the stiff resistance levels while on the lower side 4950 and 4900 are the strong support levels.

Suggested Strategy: The markets are moving in line with rupee fluctuations. The markets may dilly dally till a final picture emerges on Greece on 17th June. Till such time, operate in the markets with light positions. The market bias is downward. Higher levels may be sold into.

Markets Scenario 30/05/12

The markets opened in green and fluctuated considerably during the day. However, finally the markets closed flat with IT and tech being the best performers.

The markets closed with marginal gains yesterday with IT, tech, realty and metal being the lead gainers. Power, auto and oil & gas, too, gained marginally while FMCG, consumer durables and heath care lost substantially.

The market breadth was positive with advances at 726 against declines of 673 on the NSE. The top Nifty gainers were HCL Tech, Cairn India, Wipro and Coal India, while the losers included ACC, BPCL, IDFC and SAIL.

Technical Analysis: The Sensex closed at 16439, up 22 points from its previous close, and the Nifty shut shop at 4990, up 4 points. On the higher side Nifty 5000 and 5050 will be the strong resistance levels while on the lower side 4950 and 4900 will be the strong support levels.

Suggested Strategy: The markets are indecisive with a positive bias for the next few sessions. The markets needs to be monitored on a daily if not hourly basis. Higher levels may be utilized to book profits. Lower levels may be used to acquire quality stocks to build a solid portfolio.

Market Scenario 29/05/12

The markets open in positive territory and made robust gains with banking, power, consumer durables and capital goods leading the rally.

Auto, realty and metal, too, made significant gains and oil & gas was the only sector that closed with only moderate gains.

The market breadth was positive with advances at 956 against declines of 477 on the NSE. The top Nifty gainers were SBI, BHEL, Tata Power, and PNB while losers included GAIL, BPCL, Maruti and ONGC.

Technical Analysis: The Sensex closed at 16417, up 199 points from its previous close, and the Nifty shut shop at 4986, up 65 points. On the higher side Nifty 5000 and 5050 is a strong resistance levels while on the lower side 4950 is the strong support level.

Suggested Strategy: The markets have turned positive in line with the slight appreciation of Rupee. The markets seemed to have turned for the better at least from the short term perspective. Trading may be done in small lots and booking profits at higher levels would be in order till a clear cut direction is seen.

Market Scenario

The Indian market opened for trading on a positive note. It was a quiet end to a choppy session despite a strong opening since the market gave up all its gains as trade progressed amid negative global cues and weakness in Indian rupee.

IT came in for a bit of short-selling but capital goods, banks and realty were positive. The market breadth was positive with advances at 925 against declines of 492 on the NSE.

The market trend is indecisive with a down ward bias. Hence, careful selection of stocks is of paramount importance.

Technical Analysis: Sensex shut shop at 16183, up 30 points and Nifty at 4906, up 14 points from the previous close. If Nifty level of 4922 holds then we could see the bounce back to last till 5070. On the lower side 4900 is the strong support level.

Suggested Strategy: The market trend is down ward biased. However, the markets are making an attempt to break out on the upside. Markets are waiting for positive cues. The market is at a good point to enter at current levels. Long term investors may start accumulating blue chips stocks on every decline.

Market Scenario

The markets made robust gains with banking and oil & gas leading the rally. The markets seem to have reacted positively to rise in petrol prices as an indication of further reforms to come.

Technology, metal and auto stocks, too, closed with significant gains. FMCG and consumer durables were the only two sectors that closed with moderate gains.

The market breadth was positive with advances at 892 against declines of 512 on the NSE. The top Nifty gainers were ONGC, Bharti Airtel, Bank of Baroda, Ranbaxy while the biggest losers included JP Associates, Cairn India, Maruti and Hindustan Unilever.

The markets closed with significant gains today with banking being the best performer. Flow of news, rupee fluctuations is influencing the stock price movements.

Technical Analysis: The Sensex closed at 16222, up 274 points from its previous close, and the Nifty shut shop at 4921, up 86 points. On the higher side 4950 and 5000 will be the strong resistance levels while on the lower side 4900 and 4850 will be the strong support levels.

Suggested Strategy: The markets are reacting to rupee fluctuations and news flow. Keep a close tab over the flow of news and rupee swings. Shorting can be resorted only at higher levels. Keep booking profits at higher levels.

Market Scenario

The markets made robust gains today with banking and oil & gas leading the rally. The markets seem to have reacted positively to rise in petrol prices as an indication of further reforms to come.

Technology, metal and auto stocks, too, closed with significant gains. FMCG and consumer durables were the only two sectors that closed with moderate gains.

The market breadth was positive with advances at 892 against declines of 512 on the NSE. The top Nifty gainers were ONGC, Bharti Airtel, Bank of Baroda, Ranbaxy while the biggest losers included JP Associates, Cairn India, Maruti and Hindustan Unilever.

The markets closed with significant gains today with banking being the best performer. Flow of news, rupee fluctuations is influencing the stock price movements.

Technical Analysis: The Sensex closed at 16222, up 274 points from its previous close, and the Nifty shut shop at 4921, up 86 points. On the higher side 4950 and 5000 will be the strong resistance levels while on the lower side 4900 and 4850 will be the strong support levels.

Suggested Strategy: The markets are reacting to rupee fluctuations and news flow. Keep a close tab over the flow of news and rupee swings. Shorting can be resorted only at higher levels. Keep booking profits at higher levels.

Market Scenario

The Indian market pared losses in afternoon trade but ended lower in a session marked by volatility amidst the rupee touching a record low and global concerns over EU summit.

The market breadth was negative with advances at 481 against declines of 926 on the NSE. Top Nifty gainers were GAIL, Ranbaxy, and IDFC, while losers included Bharti Airtel, Kotak Mahindra Bank, and Sesa Goa.

The Indian market closed a choppy session of trade on a weak note following negative global cues and a depreciating rupee. Banks, metals and power stocks came in for a bit of selling.

The markets are reacting to rupee fluctuations. A close watch of rupee is warranted at this stage of the market.

Technical Analysis: Sensex shut shop at 15948, down 78 points, and Nifty at 4835, down 24 points from the previous close. On the higher side 16000 is the strong resistance level while on the lower side 15982 is the strong support level. Keep a close watch on the rupee fluctuations and take positions accordingly.

Suggested Strategy:In view of the rupee depreciation, the Govt has increased the petrol prices significantly. This is positive for the Oil Marketing Companies (OMC) and also the markets as an indication that the Govt is serious about introducing reforms. OMC companies may hog the limelight following this action of the Govt.

Market Scenario

The Indian market opens for trade on a positive note. However, following the slide of Rupee, the markets reacted negatively.

Consequently, it was a disappointing end to a session which opened strong and traded with a positive bias until noon after which the market turned nervous and gave up all its gains following record weakness in the rupee. The Indian market tumbled off the day's highs to close deep in the red, dragged down by banks, metals and infrastructure stocks.

The market breadth was negative with advances at 508 against declines of 891 on the NSE. Top Nifty gainers were TCS, HCL Technologies and Tata Motors while losers included Sesa Goa, Tata Power and Maruti Suzuki.

The consumer staples and discretionary were sought after. These scrips are acting as defensive bets in a falling market.

Technical Analysis: The markets were down 156 points and Nifty at 4860, down 45 points from the previous close. On the higher side 4900 is the strong resistance level while on the lower side 4850 and 4800 are the strong support levels.

Suggested Strategy: The markets are sliding in tune with rupee depreciation. The markets seem to be correlated to rupee swings. Rupee depreciation is favorable to IT companies but unfavorable to the markets. Keep a close watch on rupee fluctuations. Traders to be nimble footed to make the most of this type of markets. Quick entry and exits should be the watch word.

Market Scenario

The Indian market opened for trading on a positive note. It was a quiet end to a choppy session despite a strong opening since the market gave up all its gains as trade progressed amid negative global cues and weakness in Indian rupee.

IT came in for a bit of short-selling but capital goods, banks and realty were positive. The market breadth was positive with advances at 925 against declines of 492 on the NSE.

The market trend is indecisive with a down ward bias. Hence, careful selection of stocks is of paramount importance.

Technical Analysis: Sensex shut shop at 16183, up 30 points and Nifty at 4906, up 14 points from the previous close. If Nifty level of 4922 holds then we could see the bounce back to last till 5070. On the lower side 4900 is the strong support level.

Suggested Strategy: The market trend is down ward biased. However, the markets are making an attempt to break out on the upside. Markets are waiting for positive cues. The market is at a good point to enter at current levels. Long term investors may start accumulating blue chips stocks on every decline.

Market Scenario (21/05/2012)

The markets opened on a weak note on Friday but made a smart recovery in the afternoon and the indices moved into the green.

The markets gained significantly in the last one hour after after SBI reported robust performance in Q4. Along with banking, FMCG, oil & gas and metal, too, closed with significant gains. Auto, capital goods and realty closed with substantial declines.

The market breadth was negative with advances at 606 against declines of 820 on the NSE. The top Nifty gainers were SBI, Sesa Goa, Grasim and HDFC while losers included Tata Motors, Ambuja Cements, Maruti Suzuki and Bajaj Auto. The markets closed with significant gains on Friday with banking being the best performer.

Technical Analysis: The Sensex closed at 16153, up 82 points from its previous close, and the Nifty closed at 4891, up 21 points. On the higher side 4900 and 4950 on the Nifty will be the strong resistance levels while on the lower side 4850 and 4800 are the strong support levels.

Suggested Strategy: In the light of blockbuster performance from SBI, the market sentiment seemed to have improved considerably. The much needed technical correction seem to be on cards. Banks and metals appear to steer the markets in the upward direction. The banking and metal stocks may hog the limelight in the next few trading sessions.

Market Scenario (18/05/12)

The Indian markets started on a positive note with the Nifty making a technical bounce back. At one point of time, it looked that the markets turned for the better.

However, negative cues from European markets took their toll and the indices shed all the morning gains in the afternoon. FMCG, realty and metal outperformed all other sectors and closed with substantial gains while capital goods, consumer durables and auto lost significantly.

The market breadth was positive with advances at 720 against declines of 699 on the NSE. The top Nifty gainers were Ambuja Cements, Sail, ITC, JP Associates, Jindal Steel etc while losers included Reliance Infra, L&T, M&M, Bajaj Auto, Cipla, Kotak etc.

Bajaj Auto came out with disappointing set of results and the scrip lost about 2.68 per cent. Some foreign institutional houses came out with their reports. Nomura was recommending a sell on L&T.

Technical Analysis: The Sensex closed at 16070, up 40 points from its previous close, and the Nifty shut shop at 4870, up 12 points. On the higher side 4900 is the strong resistance level while on the lower side 4850 and 4830 are the strong support levels. The market trend is negatively biased.

Suggested Strategy: The market is likely to see selling pressure at higher levels which would bring it down. Every rally should be used to lighten positions.

Market Scenario

The markets lost considerably yesterday with all sectoral indices closing deeply in the red. Metal, auto, consumer durables and capital goods were the worst performers; in addition, IT, power and banking, too, took a severe beating.

In the afternoon, European markets opened in the red while Asia closed up with big cuts. Weakness in the rupee created mayhem in the Indian market and the Sensex breached the crucial 16000 mark.

The market breadth was negative with advances at 367 against declines of 1056 on the NSE. The top Nifty gainers were BPCL, Powergrid, Cairn India and Bajaj Auto while the biggest losers included Tata Motors, Tata Steel, Sail and Reliance Infra.

On the positive side, the fall in crude oil and gold augurs well for the Indian economy. Because, decline in crude oil prices will help in covering the fiscal deficit. However, the decline of rupee is a cause for worry.

Technical Analysis: The markets closed with significant losses with all sectoral indices closing in the negative. The Sensex closed at 16030, down 298 points from its previous close, and the Nifty closed at 4858, down 84 points. On the higher side 4900 will be the strong support level while on the lower side 4800 will be the strong support level.

Suggested Strategy: The market trend is downward and hence upward correction may be used to sell into the market.

Market Talk

Tata Motors: As per latest resport, JLR sales are not up to the mark. The share is likely to witness selling pressure.

Thermax: A foreign institutional house has downgraded the stock.

Sterling Holiday Resorts: Rakesh Jhunjhunwala is reported to have been buying the shares from the secondary market.

Moodys Ratings: has down graded the ratings of top three private sector Banks - ICICI Bank, HDFC Bank and Axis Bank.

Videocon Industries: has stated to have stuck oil in its Mozambique operations.

L&T: has come out with highly encouraging results for the quarter ended March 2012. The market men greeted the news with hike in its share price. Foreign brokerage houses have started re-rating the scrip.

Ashok Leyland: has come out with lack lustre performance and the share price was hammered on the bourses.

IVRCL: The company's net fell 85% in FY12. Consequently, the stock plunged around 12%.

Geometric: Rakesh Jhunjhunwala buys 5 lakh shares in the company. The shares were bought at Rs.62.51 each.

Sintex: Citigroup downgrades the stock to sell.

Dabur India: HSBC maintains neutral rating on the stock with a price target of Rs.115.

Colgate Palmolive: There was buzz that a Singapore based fund is accumulating the company's share.

Disclaimer: All the information/recommendations provided herein are for information purposes only. Readers should consult their investment advisors before making investment decisions. The information is given herein as a matter of service and in good faith. We do not accept liability for losses/actions taken on the basis of information/recommendation given herein.

WEEKLY INVESTMENT SCRIP

Scrip : Alembic Pharma

Date of Incorporation : 1907

Registered Office : Vadodara, Gujarat

Chairman : Chirayu A Amin

Face Value : Rs.2

Market Price : Rs.52

Target Price : Rs.75

EPS 2011-12 : Rs.6.90

Book Value : Rs.20.95

P/E Ratio : 7.53

52-Week High/Low : Rs.59.95/34

Group : Alembic Group

Products : Pharmaceutical Business

Recommendation : Buy

Financial Highlights:

Rs in Lakhs

Particulars 31/03/2012 QE 31/03/2012 YE 31/03/2012

Net Sales 34261 29732 146639

Total Expenditure 30149 27012 124597

Other Income 13 3 44

Interest 538 636 2621

Tax Expense 526 51 3123

Net Profit 2031 1028 13014

Equity (FV: Rs.2) 3770 3770 3770

Res Ex Rev Reserves - - 35730

EPS (Rs) 1.08 0.55 6.9

Reasons for Recommendation:

* Company with good track record

Rise in sales and profitability

Increase in Earnings Per share

EPS of Rs.6.9 with P/E multiple of 7.53

Dividend of 70% declared for 2011-12

Book Value: Rs.20.95 (FV: Rs.2)

Assuming a P/E multiple of a conservative 12 against industry average of around 24 times , the projected price is Rs.75 in the short to medium term

Disclaimer: All the information/recommendation provided herein are for information purposes only. Readers should consult their investment advisors before making investment decision. The information is given as a matter of service and in good faith. We do not accept liability for actions on the basis of information given herein.

Market Scenario

Yesterday, the markets opened on a weak note. However, soon thereafter, the markets recovered. Taking cues from European markets, both benchmark indices made substantial gains with capital goods, metal and IT being the lead gainers.

Healthcare, banking, infrastructure and fertilizer stocks, too, supported the indices well. The market breadth was positive with advances at 767 against declines of 647 on the NSE.

The top Nifty gainers were L&T, Sesa Goa, Cairn India and Sun Pharma while the biggest losers included NTPC, Maruti, IDFC and ITC.

The markets showed positive trend after several days of downward swing. According to market men, the uptrend is on account of short covering. Hence, market men are cautious about the upward movement of the stock markets.

Technical Analysis: The Sensex closed at 16328, up 112 points from its previous close, and the Nifty closed at 4943, up 35 points. On the higher side 5000 and 5050 is the strongest resistance level while on the lower side 4920 and 4900 is the support levels. The markets are likely to be range bound. Markets are likely to experience short sales at higher levels.

Suggested Strategy: Since, this is a trending market with a downward bias, short selling could be resorted only at higher levels. Market movements may be watched and positions taken depending on the direction of the markets.

Market Scenario

It was a gloomy session for the Indian market which closed on a negative note following poor March IIP data and weakness in Indian rupee. Global cues remained lackluster as concerns over Greece continued to haunt traders. News from Greece has forced investors to focus again on the potential collateral damage the European banking system may face by a Greek exit.

The market breadth was negative with advances at 426 against declines of 1008 on the NSE. Top Nifty gainers were Jaiprakash Associates, Bajaj Auto and Tata Motors while losers included Tata Power, Grasim and Sun Pharma.

This was a dismal week for the Indian market which saw almost all sectoral indices end in the red. Infrastructure took the most beating, followed by technology, metals and banks. The range for the indices shifted further down and experts believe next week will continue to be choppy and negative.

As per March IIP data, Electricity sector growth has come in at 2.7% versus 7.2%, manufacturing sector growth at -4.4% versus 11%, capital goods at -21.3%, basic goods at 1.1%, intermediate goods at -2.1% while mining sector growth is at -1.3% versus 0.4% (YoY).

The market is at an indecisive stage. This market appears to be a trending rather than a trading market.

Technical Analysis: Nifty's closing below the 5000 level four days in a row was worrisome. Sensex closed at 16292, down 127 points and Nifty at 4928, down 36 points from the previous close. On the higher side 5050 will be the strong resistance level while on the down side 4950 will be the strong support level.

Suggested Strategy: It is advisable to play the market lightly rather than heavily. Players need to be nimble footed to beat the market.

Market Scenario

The pre-opening session of the market began with the Nifty and Sensex started in the red. The Indian markets opened for trade on a subdued note with a negative bias.

Negativity prevailed in the markets and the Nifty closed below its psychologically important level of 5000. Barring FMCG and IT, all sectoral indices closed negative with realty, metal, banking and power being the worst performers. The Sensex closed at 16480, down 67 points from its previous close, and the Nifty closed at 4975, down 25 points.

The market breadth was negative with advances at 386 against declines of 1048 on the NSE. The top Nifty gainers were ITC, Ranbaxy, Bajaj Auto and TCS while the biggest losers included JP Associates, Sail, Grasim and DLF.

The markets closed with moderate losses today with realty and metal being the worst performers.

Technical Analysis: The Sensex closed at 16480 down 67 points from its previous close, and Nifty closed at 4975 down 25 points. The market as of now is indicating a negative bias. On the higher side 5000 and 5050 will be the strong resistance levels while on the lower side 4950 will be the strong support levels.

Suggested Strategy: It is advisable to tread the markets cautiously. Only expert investors who can read efficiently the charts can take position. Others can take a holiday and remain on the sidelines for the time being.

Market Scenario

The Indian Stock Market opened on a bearish note and all the pivotal lost considerable ground during the day. However, the sentiment changed for the better in the afternoon session with the Finance Minister announcing a series of measures like deferring GAAR provisions for a year.

The Finance Minister’s announcement gave a much needed respite to the bulls and the nifty closed in the green. Capital Goods, Consumer Durables, Power and Metal were the best performers during the day. Whereas FMCG, IT and Oil and Gas were the laggards.

As a result, the nifty closed with a gain of 27 points and Sensex was up by 82 points. The market breadth was positive with advance /decline was at 734 and 681 respectively on the NSE. The top performing stocks were BHEL, BPCL, L&T, while losers were JP Associates, Cairn India and HCL Tech.

The direction of the market is not known yet. However, the Govt’s reform process will be watched with keen interest.

Technical Analysis: On Monday, Nifty closed the day at 5114.15 and Sensex at 16912.71. The Nifty may face resistance at 5200 and 5250 while on the down side; the support levels will be 5100 and 5050. Cautious should be the watch word for the day.

Suggested Strategy: If the markets open with a gap up, it is advisable to make an entry only on reactions rather than jumping on to the fray. Keep booking profits at higher levels.

Market Scenario

The Indian Stock Market opened on a bearish note and all the pivotal lost considerable ground during the day. However, the sentiment changed for the better in the afternoon session with the Finance Minister announcing a series of measures like deferring GAAR provisions for a year.

The Finance Minister’s announcement gave a much needed respite to the bulls and the nifty closed in the green. Capital Goods, Consumer Durables, Power and Metal were the best performers during the day. Whereas FMCG, IT and Oil and Gas were the laggards. As a result, the nifty closed with a gain of 27 points and Sensex was up by 82 points.

The market breadth was positive with advance /decline was at 734 and 681 respectively on the NSE. The top performing stocks were BHEL, BPCL, L&T, while losers were JP Associates, Cairn India and HCL Tech.

The direction of the market is not known yet. Positive trend may continue for a few more sessions. However, the Govt’s reform process will be watched with keen interest.

Technical Analysis: On Monday, Nifty closed the day at 5114.15 and Sensex at 16912.71. The Nifty may face resistance at 5200 and 5250 while on the down side; the support levels will be 5100 and 5050. Cautious optimism should be the watch word for the day.

Strategy: If the markets open with a gap up, it is advisable to make an entry only on reactions rather than jumping on to the fray. Keep booking profits at higher levels.

Market Scenario

During the week, the Indian Stock market traded within a narrow band for most part of the week . However, the markets broke out of the tight range and cruised downwards piercing all important levels. The benchmark indices recorded the lowest point since January end this calendar year. The infrastructure sector led the losing sectors.

In other words, Sensex was down 2.1% while Nifty was down by 2.9%. Likewise, CNX Midcap index was down 2.8%. It was a dismal end to the week for the Indian bourses which saw heavy selling pressure on Friday on concerns that India was considering a review of the Double Taxation Avoidance Treaty with Mauritius. This led to a sudden crash in share prices which caused the Nifty to breach its 200 DMA and close with huge losses and Nifty closing below the 5100 mark. Metals, banks, capital goods and realty sectors lost considerable ground.

However, some of the stocks like Cipla, Sun Pharma, and Wipro were gainers while PNB, BHEL and Bank of Baroda were the losers. The markets are expecting favorable news from the Government on Monday. However, it is to be seen how the Government reacts to the situation.

Technical Analysis: The overall market trend has turned bearish. On the downside 5050 and 4990 will be the strong support levels while 5150 and 5200 will act as strong resistance levels. Following heavy selling seen on Friday, some short covering may emerge initially on Monday. Avoid short selling. Traders need to be nimble footed and make swift entry and exits.

Suggested Strategy: It is advisable to wait and watch how the market unfolds on Monday. Cautious approach should be the watch word.

WEEKLY INVESTMENT SCRIP

Scrip : Hyderabad Industries

Date of Incorporation : 1946

Registered Office : Hyderabad, Andhra Pradesh

Chairman : C K Birla

Face Value : Rs.10

Market Price : Rs.363.10

Target Price : Rs.450

EPS 2011-12 : Rs.81.13

Book Value : Rs.451.21

P/E Ratio : 4.48

52-Week High/Low : Rs.424/Rs.255

Group : C K Birla Group

Products : Building Products, Thermal Insulation, Products and Wind Power

Recommendation : Buy

Financial Highlights:

Rs in Lakhs

Particulars QE 31/03/2012 QE 31/03/2012 YE 31/03/2012

Net Sales 24,883 19,146 85,781

Total Expenditure 22,341 18,008 77,148

Other Income 119 468 608

Interest 86 182 748

Tax Expense 793 390 2,881

Net Profit 1,798 1,052 6,055

Equity (FV: Re.10) 749 749 749

Res Ex Rev Reserves - - 33,047

EPS (Rs) 24.07 14.09 81.13

Reasons for Recommendation:

* Company with excellent pedigree and commendable track record

* Rise in sales and profitability

* Increase in Earnings Per share

* EPS of Rs.81.13 with P/E multiple of 4.48

* Dividend of 125% declared for 2011-12

* Book Value: Rs.451.21 (FV: Rs.10

* Assuming a P/E multiple of a modest 10, the projected price is Rs. 813 in a buoyant market. However, a minimum target of Rs.450 is expected.

Disclaimer: All the information/recommendation provided herein are for information purposes only. Readers should consult their investment advisors before making investment decision. The information is given as a matter of service and in good faith. We do not accept liability for actions on the basis of information given herein.