Market Scenario 27/07/12

Weakness in banking took its toll on the markets today with both benchmark indices closing with significant losses. All sectoral indices closed in the red and along with banking, realty, capital goods, IT and metal, too, closed with substantial declines.

The market breadth was negative with advances at 331 against declines of 1133 on the NSE. The top Nifty gainers were Ambuja Cements, NTPC, Bajaj Auto, and Grasim while losers included PNB, DLF, Tata Power and Tata Motors.

In the absence of positive news from the Govt, the markets are heading downwards.

Technical Analysis: The Sensex closed at 16640, down 206 points from its previous close, and the Nifty shut shop at 5043, down 67 points. On the higher side 5050 and 5100 are the strong resistance levels while on the lower side 5000 and 4950 are the strong support levels.

Suggested Strategy: Markets have turned weak and seem to be heading to lower levels. Buy on declines and sell on rallies.