Market Scenario 20/07/12

The markets closed positive yesterday with IT, oil & gas and consumer durables being the best performers. Capital goods and power, too, gained significantly and auto remained the only sector that closed negative.

The market breadth was positive with advances at 780 against declines of 660 on the NSE. The top Nifty gainers were Cairn India, BPCL, Infosys and IDFC while losers included Maruti Suzuki, Bank of Baroda, Kotak Mahindra Bank and Bharti Airtel.

Markets are awaiting reforms from the Govt. Till a clear picture emerges on the reforms front, markets are likely to move in a narrow band.

Technical Analysis: The Sensex closed at 17279, up 94 points from its previous close, and the Nifty shut shop at 5243, up 26 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 trading in a listless manner. Perhaps, the markets are waiting for key announcements on the reforms front. Till such time, markets may remain range bound. Trade lightly and take profits at higher levels. Buy fundamentally strong shares on markets declines.