Market Scenario 26/06/12

The markets closed with moderate declines today and barring consumer durables, all sectoral indices closed negative. Banking, power, metal and realty were the worst performers in today's session and auto and IT, too, lost significantly.

The market breadth was positive with advances at 754 against declines of 677 on the NSE. The top Nifty gainers were Cairn India, GAIL, RIL, and Ambuja Cements while losers included Hero Motor Corp, Siemens, Grasim, and Cipla.

Technical Analysis: The Sensex closed at 16882, down 90 points from its previous close, and the Nifty shut shop at 5115, down 31 points. On the higher side Nifty 5150 and 5200 is the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets have not taken kindly to the Govt’s policy initiatives. The markets on expectation went up initially only to retreat in the afternoon. The markets may move in a narrow band. Trade lightly. Buy on declines and sell on rallies should be the watch word for the next few sessions.