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.