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.