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.