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.