Market Scenario 06/06/12

The markets gained moderately today with capital goods, banking and power being the lead gainers. Oil &gas, healthcare and IT, too made significant gains while realty, FMCG and consumer durables lost significantly.

The market breadth was positive with advances at 766 against declines of 645 on the NSE. The top Nifty gainers were L&T, Grasim, Reliance Infra, and IDFC while losers included Ambuja Cements, Tata Motors, Siemens, and Bharti Airtel.

Technical Analysis: The Sensex closed at 16021, up 32 points from its previous close, and the Nifty closed at 4863, up 15 points. On the higher side Nifty 4900 is the strong resistance level while on the lower side 4850 and 4800 are the strong support levels.

Suggested Strategy: The markets are moving in sideways direction. However, the markets seem to be awaiting the outcome of events like Greece elections and RBI policy. Trade lightly. Fundamentally strong shares may be added to portfolio with a 12 to 16 months investment horizon.