Market Scenario 25/07/12

The markets closed with moderate gains today with FMCG, IT and metal being the lead gainers. Banking, capital goods, realty and power lost significantly.

The market breadth was negative with advances at 675 against declines of 745 on the NSE. The top Nifty gainers were HUL, Ranbaxy, Sterlite Industries and Maruti Suzuki while losers included Wipro, SAIL, L&T and Kotak Mahindra Bank.

Markets have turned indecisive. Markets are expected to move in a narrow range.

Technical Analysis: The Sensex closed at 16918, up 41 points from its previous close, and the Nifty shut shop at 5128, up 10 points. On the higher side 5150 and 5200 are the strong resistance levels while on the lower side 5100 and 5050 are the strong support levels.

Suggested Strategy: The markets have turned weak for the last few sessions. The trend is likely to continue for some more time. Markets are likely to move in a narrow band. Buy on declines and sell on rallies would be the ideal strategy.