Market Scenario 26/07/12

The markets lost moderately today with metal, consumer durables and power being the worst performers. Capital goods, oil & gas and auto, too, lost significantly while FMCG, healthcare and IT closed with moderate gains.

The market breadth was negative with advances at 460 against declines of 972 on the NSE. The top Nifty gainers were HCL Tech, Ambuja Cements, DLF and ITC while losers included Jindal Steel, SAIL, Reliance Infra and Tata Steel.

The markets may remain listless till some policy reforms are introduced.

Technical Analysis: The Sensex closed at 16846, down 72 points from its previous close, and the Nifty shut shop at 5110, down 19 points. On the higher side 5150 and 5200 are the strong resistance levels while on the lower side 5050 and 500 are the strong support levels.

Suggested Strategy: Markets have turned weak as the expected policy reforms were not forthcoming from the Govt. Market circles expect that the reforms may be posted till the Vice Presidential elections are over next month. Till such time, markets may move in a narrow band. Buy on declines and sell on rallies.