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.