Market Scenario 30/07/12

The markets lost significantly during the week with FMCG being the only sector that managed to close positive. The Sensex was down 2% and Nifty lost 2.1% over the week. The top Nifty gainers during the week were HCL Tech, Ambuja Cements and HUL while losers included PNB, SAIL, and JP Associates.

On last Friday the markets closed with significant gains with metal, FMCG and IT being the lead gainers. Auto and banking, too, gained significantly while realty, capital goods and healthcare closed with moderate declines.

The top Nifty gainers were Sterlite Industries, Tata Steel, Tata Motors and HDFC Bank while losers included PNB, SBI, Bank of Baroda and JP Associates.

The markets still remain indecisive. Buy at lower levels to take profit at higher levels.

Technical Analysis: The Sensex closed at 16839, up 199 points from its previous close, and the Nifty shut shop at 5100, up 57 points. On the higher side Nifty 5150 and 5200 are the strong resistance levels while on the lower side 5050 and 5000 are the strong support levels.

Suggested Strategy: The markets are moving in alternate bouts of buying and selling with the indexing see sawing on the higher side and the lower side. However, the markets trend appears to be downward bias. Buy fundamentally strong shares with a view to book profits at higher levels.