Market Scenario 27/06/12

The markets closed with moderate gains yesterday with oil & gas, power, banking and auto being the biggest gainers. Realty and healthcare, too, made substantial gains while consumer durables, FMCG and IT closed negative.

The market breadth was negative with advances at 684 against declines of 731 on the NSE. The top Nifty gainers were GAIL, Grasim, Tata Power and Power Grid while losers included SAIL, HUL, Sesa Goa, Sterlite Industries.

Markets are waiting for a breakout. News flow may be watched carefully for a possible breakout in either direction.

Technical Analysis: The Sensex closed at 16907, up 24 points from its previous close, and the Nifty shut shop at 5121, up 6 points. On the higher side Nifty 5150 and 5200 are the strong resistance levels while 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow band. The markets have turned listless and waiting for a breakout . Market participants may keenly watch the news flow and rupee fluctuations and take position accordingly. Buy on declines and sell on rallies should be the strategy in the next few sessions.