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.