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.