Market Scenario 31/07/12

The markets made robust gains today with all sectoral indices closing in the green. Realty, power, banking and capital goods were the best performers in today's session and metal, consumer durables and auto, too, closed with substantial upside.

The market breadth was positive with advances at 953 against declines of 491 on the NSE. The top Nifty gainers were Reliance Infra, JP Associates, Cairn India and IDFC while losers included Ambuja Cements, HUL, HCL Tech and ONGC.

Some favorable announcement is expected from the RBI on monetary policy. However, it is to be seen how this is going to pan out today.

Technical Analysis: The Sensex closed at 17144, up 304 points from its previous close, and the Nifty shut shop at 5200, up 100 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5150 and 5100 are the strong support levels.

Suggested Strategy: The markets bounced back with a decent spurt on expectation of favorable monetary policy from RBI today. The RBI policy may be keenly watched for taking further course of action. Cautious optimism should be the watch word. The markets are positively biased.

Market Scenario 30/07/12

The markets lost significantly during the week with FMCG being the only sector that managed to close positive. The Sensex was down 2% and Nifty lost 2.1% over the week. The top Nifty gainers during the week were HCL Tech, Ambuja Cements and HUL while losers included PNB, SAIL, and JP Associates.

On last Friday the markets closed with significant gains with metal, FMCG and IT being the lead gainers. Auto and banking, too, gained significantly while realty, capital goods and healthcare closed with moderate declines.

The top Nifty gainers were Sterlite Industries, Tata Steel, Tata Motors and HDFC Bank while losers included PNB, SBI, Bank of Baroda and JP Associates.

The markets still remain indecisive. Buy at lower levels to take profit at higher levels.

Technical Analysis: The Sensex closed at 16839, up 199 points from its previous close, and the Nifty shut shop at 5100, up 57 points. On the higher side Nifty 5150 and 5200 are the strong resistance levels while on the lower side 5050 and 5000 are the strong support levels.

Suggested Strategy: The markets are moving in alternate bouts of buying and selling with the indexing see sawing on the higher side and the lower side. However, the markets trend appears to be downward bias. Buy fundamentally strong shares with a view to book profits at higher levels.

Market Scenario 27/07/12

Weakness in banking took its toll on the markets today with both benchmark indices closing with significant losses. All sectoral indices closed in the red and along with banking, realty, capital goods, IT and metal, too, closed with substantial declines.

The market breadth was negative with advances at 331 against declines of 1133 on the NSE. The top Nifty gainers were Ambuja Cements, NTPC, Bajaj Auto, and Grasim while losers included PNB, DLF, Tata Power and Tata Motors.

In the absence of positive news from the Govt, the markets are heading downwards.

Technical Analysis: The Sensex closed at 16640, down 206 points from its previous close, and the Nifty shut shop at 5043, down 67 points. On the higher side 5050 and 5100 are the strong resistance levels while on the lower side 5000 and 4950 are the strong support levels.

Suggested Strategy: Markets have turned weak and seem to be heading to lower levels. Buy on declines and sell on rallies.

Market Scenario 26/07/12

The markets lost moderately today with metal, consumer durables and power being the worst performers. Capital goods, oil & gas and auto, too, lost significantly while FMCG, healthcare and IT closed with moderate gains.

The market breadth was negative with advances at 460 against declines of 972 on the NSE. The top Nifty gainers were HCL Tech, Ambuja Cements, DLF and ITC while losers included Jindal Steel, SAIL, Reliance Infra and Tata Steel.

The markets may remain listless till some policy reforms are introduced.

Technical Analysis: The Sensex closed at 16846, down 72 points from its previous close, and the Nifty shut shop at 5110, down 19 points. On the higher side 5150 and 5200 are the strong resistance levels while on the lower side 5050 and 500 are the strong support levels.

Suggested Strategy: Markets have turned weak as the expected policy reforms were not forthcoming from the Govt. Market circles expect that the reforms may be posted till the Vice Presidential elections are over next month. Till such time, markets may move in a narrow band. Buy on declines and sell on rallies.

Market Scenario 25/07/12

The markets closed with moderate gains today with FMCG, IT and metal being the lead gainers. Banking, capital goods, realty and power lost significantly.

The market breadth was negative with advances at 675 against declines of 745 on the NSE. The top Nifty gainers were HUL, Ranbaxy, Sterlite Industries and Maruti Suzuki while losers included Wipro, SAIL, L&T and Kotak Mahindra Bank.

Markets have turned indecisive. Markets are expected to move in a narrow range.

Technical Analysis: The Sensex closed at 16918, up 41 points from its previous close, and the Nifty shut shop at 5128, up 10 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 have turned weak for the last few sessions. The trend is likely to continue for some more time. Markets are likely to move in a narrow band. Buy on declines and sell on rallies would be the ideal strategy.

Market Scenario 24/07/12

The markets closed with significant declines today with metal, infra and capital goods being the worst performers. Europe, too, didn't come to the rescue of the markets and pulled the indices down.

The market breadth was negative with advances at 331 against declines of 1106 on the NSE. The top Nifty gainers were Dr Reddys Lab, Cipla and ONGC while losers included Maruti, JP Associates, Sesa Goa and Sterlite Industries.

Markets are displaying weakness owing to host of factors like rise in inflation, crude oil prices, depreciation of rupee and uncertain political scenario. Markets may move in a narrow range with downward bias.

Technical Analysis: The Sensex closed at 16877, down 281 points from its previous close, and the Nifty shut shop at 5118, down 87 points. On the higher side 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 downward direction owing to uncertainty on the political front, depreciation of rupee, high level of inflation and rise in crude oil prices. The trend may continue for some more time. Buy on declines and sell on rallies should be the strategy.

Market Scenario 23/07/12

The markets remained sluggish during the week and closed with moderate declines. The Sensex was down 0.3% and Nifty lost 0.6% over the week.

The top Nifty gainers during the week were Bajaj Auto, Cairn India, Bharti Airtel, and Coal India while losers included Kotak Mahindra Bank, Tata Motors, and Reliance Infra.

On Friday, the markets closed with significant declines with banking, capital goods, realty and power being the worst performers. Healthcare and oil & gas, too, lost significantly while auto and metal closed positive. The top Nifty gainers were Bajaj Auto, Maruti Suzuki, Asian Paints and TCS while losers included BHEL, Kotak Mahindra Bank, Dr Reddys and IDFC.

The sudden resignation of Sharad Pawar and Praful Patel has not taken well by the market men. This episode has once again thrown the markets in to uncertainty. One can only hope that the Govt solves this problem at the earliest.

Technical Analysis: The Sensex closed at 17158, down 120 points from its previous close, and the Nifty shut shop at 5205, down 38 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are waiting for some positive news on the reforms front from the Govt. However, the resignation of Nationalist Congress Party members i.e. Sharad Pawar and Praful Patel from the council of ministers has once again triggered uncertainty on the political front. The much needed reforms may not be forthcoming in the near future. Wait and watch should be the watch word.

Market Scenario 20/07/12

The markets closed positive yesterday with IT, oil & gas and consumer durables being the best performers. Capital goods and power, too, gained significantly and auto remained the only sector that closed negative.

The market breadth was positive with advances at 780 against declines of 660 on the NSE. The top Nifty gainers were Cairn India, BPCL, Infosys and IDFC while losers included Maruti Suzuki, Bank of Baroda, Kotak Mahindra Bank and Bharti Airtel.

Markets are awaiting reforms from the Govt. Till a clear picture emerges on the reforms front, markets are likely to move in a narrow band.

Technical Analysis: The Sensex closed at 17279, up 94 points from its previous close, and the Nifty shut shop at 5243, up 26 points. On the higher side Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are trading in a listless manner. Perhaps, the markets are waiting for key announcements on the reforms front. Till such time, markets may remain range bound. Trade lightly and take profits at higher levels. Buy fundamentally strong shares on markets declines.

Market Scenario 19/07/12

The markets closed with moderate gains yesterday and barring healthcare and oil & gas, all sectoral indices closed positive. Capital goods and metal remained the best performers and auto, too, made significant gains after Bajaj Auto announced its numbers.

Retail sector gained on the back of expectations that some positive move may come from the government on FDI, while PSU banks traded negative.

The market breadth was positive with advances at 721 against declines of 714 on the NSE. The top Nifty gainers were Bajaj Auto, Tata Power, Sesa Goa and Jindal Steel while losers included PNB, Tata Motors, Bank of Baroda and Dr Reddys Lab.

Technical Analysis: The Sensex closed at 17185, up 80 points from its previous close, and the Nifty shut shop at 5216, up 23 points. On the higher side Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are dilly dallying with alternate bouts of selling and buying. This trend may continue for a few more sessions till clear picture emerges on the reforms front. Play lightly and profit booking may be resorted to at higher levels. Sound stocks may be bought on market declines.

Market Scenario 18/07/12

The markets lost all the early gains in the afternoon and closed negative. IT, metal, realty and power were the worst performers in today's session and auto and capital goods, too, lost significantly. Healthcare, consumer durables and oil & gas closed positive.

The market breadth was negative with advances at 507 against declines of 936 on the NSE. The top Nifty gainers were Bharti Airtel, Maruti Suzuki, Dr Reddys and Axis Bank while losers included Tata Steel, TCS, Tata Motors and Jindal Steel.

Markets are moving in a listless manner. The trend may continue for some more time.

Technical Analysis: The Sensex closed at 17103, down 110 points from its previous close, and the Nifty shut shop at 5197, down 30 points. On the higher side 5200 and 5250 are the strong resistance levels while on the lower side 5150 and 5100 are strong support levels.

Suggested Strategy: The markets are moving in a very narrow range. This trend may continue for a few more sessions. However, no decisive break out on either side is visualized in the near term. Keep booking profits at higher levels and buy strong shares on declines.

Market Scenario 16/07/12

The markets closed with significant declines this week with all sectoral indices closing negative. The Sensex was down 1.6% and Nifty also lost 1.6% over the week.

The markets closed flat on Friday with realty, metal and consumer durables being the biggest losers. Power and IT, too, lost significantly and FMCG was the only sector that managed to close in the green.

The top Nifty gainers during the week were ONGC, GAIL, BPCL, and HDFC Bank while losers included Infosys, Wipro, Tata Steel and Jindal Steel.

Owing to forthcoming Presidential elections, policy reforms seem to be kept in abeyance. Once, the event is over, Govt may initiate policy reforms. Till such time, light trading may be done.

Technical Analysis: The Sensex closed at 17214, down 19 points from its previous close, and the Nifty shut shop at 5227, down 8 points. On the higher side Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow range. Perhaps, things may change after the Presidential elections. Markets are waiting from policy reforms from the Govt. Till such time, markets may experience alternate bouts of buying and selling in a narrow band. Buy strong shares on declines and keep booking profits at higher levels. Trade light.

Market Scenario 13/07/12

The markets closed with significant losses today with IT taking severe beating. Tech, consumer durables, auto and capital goods were other sectors that closed with significant declines and oil & gas and realty were the only two sectors that managed to close in the green.

The market breadth was negative with advances at 438 against declines of 986 on the NSE. The top Nifty gainers were JP Associates, ONGC, Hero Motor Corp and GAIL while losers included Infosys, Wipro, Bharti Airtel and IDFC.

The quarterly results of TCS announced after market hours, were better than Infosys and in line with market expectations. The markets may greet the news with cheers. Hence, market may open strong today.

Technical Analysis: The Sensex closed at 17233, down 257 points from its previous close, and the Nifty shut shop at 5235, down 71 points. On the higher side, Nifty 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The results of Infosys had adverse effect on the markets with the Nifty sliding by about 70 points. However, TCS results which were announced after the closure of the markets have been in line with market expectations. The markets may open with gap up. The market movements may be watched on a tick by tick basis. Keep booking profits at higher levels. Lower levels may be utilized for accumulating fundamentally strong shares.

Market Scenario 12/07/12

The markets closed with significant declines today and barring capital goods, all sectoral indices closed negative. Realty, auto, metal and oil & gas were the biggest laggards in today's session and FMCG and power, too, lost significantly.

The market breadth was negative with advances at 525 against declines of 925 on the NSE. The top Nifty gainers were L&T, Kotak Mahindra Bank, BPCL and Power Grid while losers included Hindalco, Reliance Infra, Tata Motors and Wipro.

The markets are moving in an indecisive manner. Due to none too encouraging monsoon, rising inflation and high interest rates are preventing the markets from moving ahead.

Technical Analysis: The Sensex closed at 17489, down 129 points from its previous close, and the Nifty shut shop at 5306, down 39 points. On the higher side 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: The markets have once again turned weak on global economic news. On the domestic front, poor monsoon, high inflation are plaguing the markets. In view of forthcoming Presidential election, the markets may remain lack luster. It is better to wait and watch and sit on side lines.

Market Scenario 11/07/12

Taking cues from European markets, both benchmark indices gained significantly today. All sectoral indices closed positive with capital goods, FMCG, banking and auto being the biggest gainers. Metal, realty and power, too, closed with substantial gains.

The market breadth was positive with advances at 953 against declines of 483 on the NSE. The top Nifty gainers were Axis Bank, JP Associates, PNB and Reliance Infra while losers included ACC and Wipro.

Markets have reacted positively to European cues and started moving up. The trend temporarily is biased upside.

Technical Analysis: The Sensex closed at 17618, up 226 points from its previous close, and the Nifty shut shop at 5345, up 70 points. On the higher side 5400 and 5450 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: The markets have come out of narrow groove on the strength of upward movement in the European markets. The market s is likely to grind upwards with intermittent minor corrections. Keep booking profits at higher levels while lower levels may be used to buy strong shares.

Market Scenario 10/07/12

The markets lost significantly today with all sectoral indices closing in the red. Metal, power, auto and realty were the biggest losers in today's session and capital goods and consumer durables, too, lost significantly.

The market breadth was negative with advances at 420 against declines of 1031 on the NSE. The top Nifty gainers were TCS, DLF, Dr Reddys and Hindalco while losers included Reliance Infra, Jindal Steel, JP Associates and Ranbaxy.

The markets are moving a narrow band and displaying lack of direction. The lack luster trading may come to an end after the completion of the Presidential elections. Till such time keep your fingers crossed.

Technical Analysis: The Sensex closed at 17392, down 129 points from its previous close, and the Nifty shut shop at 5275, down 42 points. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow range. The indecisiveness may persist till some positive news emerges on the policy front from the Govt. The trend is likely to continue till Presidential elections are completed. Trade lightly and trade right should be the watch word.

Market Scneario 09/07/12

It was a range bound and volatile week for the Indian market which traded in no particular direction though the bias, as per experts, remain positive. Global uncertainties weighed heavily on the Indian market leading to cautious trade. Banks this week posted the highest level since April 19 though FMCG and oil & gas sectors came under some pressure.

On Friday, The market breadth was negative with advances at 574 against declines of 894 on the NSE. Top Nifty gainers were ICICI Bank, Mahindra & Mahindra and HUL while losers included Jindal Steel & Power, Sesa Goa and Maruti Suzuki.

Markets are expecting some positive news from the Govt. A clear trend is likely to emerge after the Presidential elections are completed.

Technical Analysis: Sensex shut shop at 17521, down 17 points and Nifty at 5316, down 10 points from the previous close. On the higher side 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: The markets are moving in an indecisive manner. Perhaps, the markets are awaiting some policy reforms from the Govt which may not happen till the Presidential elections are over. Till such time, markets may move in a narrow band. Keep booking profits at higher levels while lower levels may be utilized to buy quality stocks.

Market Scenario 05/07/12

The markets traded range bound throughout the day and closed with moderate gains. Metal and realty were the biggest gainers in today's session and capital goods, power and banking, too, made significant gains.

The market breadth was positive with advances at 936 against declines of 513 on the NSE. The top Nifty gainers were Sterlite Industries, Sesa Goa, Jindal Steel, and JP Associates while losers included ONGC, Asian Paints, Dr Reddys and Kotak Mahindra Bank.

The markets are moving in a listless manner with alternate bouts of buying and selling. Look out for positive announcements from the Govt for decisive upward break out.

Technical Analysis: The Sensex closed at 17463, up 37 points from its previous close, and the Nifty shut shop at 5303, up 15 points. On the higher side Nifty 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: The markets are in a consolidation mode after the massive upswing on Friday. The markets are likely to move in a narrow range till some positive news from the Govt. Till such time, the markets are expected to be lack luster and further consolidate. Buy on declines and book profit on rallies. Cautious optimism should be the watch word.

Market Scenario 04/07/12

Real estate, metals and banks help the market close in the green after a lackluster session which saw the indices trade flat for most part of the day yesterday. The range for the day was a mere 40 points with infrastructure keeping the market down.

The market breadth was positive with advances at 893 against declines of 560 on the NSE. Top Nifty gainers were DLF, Bharti Airtel, and Hindalco while losers included BHEL, Jindal Steel & Power and TCS.

The markets are consolidating after seeing an upswing last Friday. This sideways trend may continue for a few more sessions with an upward bias.

Technical Analysis: Sensex shut shop at 17425, up 26 points and Nifty at 5287, up 9 points from the previous close. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: The markets are moving in a narrow band and appear to be consolidating after strong rally seen on Friday last. The markets may move in a sideways direction for a few more sessions with an upside bias. Buy fundamentally strong shares on declines.

Market Scenario 02/07/12

The markets closed with significant gains last week with all sectoral indices closing positive. The Sensex was up 2.7% and Nifty also gained 2.7% over the week.

The CNX Midcap index closed with 3% gain, BSE Small Cap added 2.2% while the Bank Nifty closed with 3.2% gain. The BSE Metal closed with 4% gain, BSE Oil Gas was up 2.5% and BSE Power closed with 4.75% gain over the week. The BSE Realty was up 2.5%, BSE Healthcare gained 2.5% while BSE Capital Goods closed with 3% gain.

The top Nifty gainers during the week were Tata Power , Jindal Steel, ICICI Bank and Maruti Suzuki while the biggest losers included Cairn India and BPCL. On Friday, the market breadth was positive with advances at 1093 against declines of 379 on the NSE.

On the positive side, slight appreciation of rupee, falling crude oil prices, are encouraging signs. However, high level of inflation continues to be worrisome. On the global level, the sanctioning of bail out of Greece is a good augury. However, the financial problems of Spain and Italy also to be sorted out. Cyprus seems to the new candidate for bail out package.

The expected positive announcement on GAAR has sent the markets in to a tizzy. The market sentiment has improved tremendously. The bulls may take advantage of the strong up move and take position accordingly.

Technical Analysis: The Sensex closed at 17430, up 439 points from its previous close, and the Nifty shut shop at 5279, up 130 points. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: Since the markets have decisively closed above the crucial resistance level of 5250, the market sentiment has improved significantly. At higher levels, profit booking can be expected. Buy on declines and sell on rallies.