Market Scenario 29/06/12

The markets closed with moderate gains today with defensive sectors like FMCG and consumer durables being the biggest gainers. Banking and oil & gas lost significantly while realty and capital goods closed with moderate declines.

The market breadth was positive with advances at 739 against declines of 689 on the NSE. The top Nifty gainers were JP Associates, Tata Steel, ACC and ITC while losers included Sesa Goa, GAIL, IDFC and Sterlite Industries.

As expected, the markets are trading in a narrow range making it difficult even for the seasoned traders to beat the market. Trade light and trade smart.

Technical Analysis: The Sensex closed at 16991, up 23 points from its previous close, and the Nifty shut shop at 5149, up 7 points. On the higher side 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 very narrow bank and waiting for positive news to break out on the upside. More market friendly reforms are expected from the Prime Minister who is currently holding the Finance portfolio. Till some reforms measures are announced, the markets are likely display listless tendencies. However, cautious optimism should be the watch word.