Market Scenario 19/07/12

The markets closed with moderate gains yesterday and barring healthcare and oil & gas, all sectoral indices closed positive. Capital goods and metal remained the best performers and auto, too, made significant gains after Bajaj Auto announced its numbers.

Retail sector gained on the back of expectations that some positive move may come from the government on FDI, while PSU banks traded negative.

The market breadth was positive with advances at 721 against declines of 714 on the NSE. The top Nifty gainers were Bajaj Auto, Tata Power, Sesa Goa and Jindal Steel while losers included PNB, Tata Motors, Bank of Baroda and Dr Reddys Lab.

Technical Analysis: The Sensex closed at 17185, up 80 points from its previous close, and the Nifty shut shop at 5216, up 23 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 markets are dilly dallying with alternate bouts of selling and buying. This trend may continue for a few more sessions till clear picture emerges on the reforms front. Play lightly and profit booking may be resorted to at higher levels. Sound stocks may be bought on market declines.