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.