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.