Market Scenario 21/06/12

Bounce back by the cement sector from the lows of the day helped the market close with modest gains following a subdued and range bound session. Volumes were good and sectors that saw positive trade were autos, metals and infra.

The market breadth was positive with advances at 896 against declines of 519 on the NSE. Top Nifty gainers were ACC, Sterlite Industries, HCL Technologies, Tata Motors and Jindal Steel while losers included TCS, Coal India, Bharti Airtel, DLF and Maruti.

The markets are range bound and moving in a narrow range.

Technical Analysis: Sensex shut trade at 16896, up 36 points and Nifty at 5120, up 16 points from the previous close. On the higher side Nifty 5150 and 5200 are the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow range of Nifty 5000 to 5200 points. Hence, crossing 5200 seem to be a stiff resistance level. This narrow range may be used as entry and exit levels till a decisive break out is seen.