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.