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.