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.