Market Scenario 31/07/12

The markets made robust gains today with all sectoral indices closing in the green. Realty, power, banking and capital goods were the best performers in today's session and metal, consumer durables and auto, too, closed with substantial upside.

The market breadth was positive with advances at 953 against declines of 491 on the NSE. The top Nifty gainers were Reliance Infra, JP Associates, Cairn India and IDFC while losers included Ambuja Cements, HUL, HCL Tech and ONGC.

Some favorable announcement is expected from the RBI on monetary policy. However, it is to be seen how this is going to pan out today.

Technical Analysis: The Sensex closed at 17144, up 304 points from its previous close, and the Nifty shut shop at 5200, up 100 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5150 and 5100 are the strong support levels.

Suggested Strategy: The markets bounced back with a decent spurt on expectation of favorable monetary policy from RBI today. The RBI policy may be keenly watched for taking further course of action. Cautious optimism should be the watch word. The markets are positively biased.