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.