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.