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.