Market Scneario 09/07/12

It was a range bound and volatile week for the Indian market which traded in no particular direction though the bias, as per experts, remain positive. Global uncertainties weighed heavily on the Indian market leading to cautious trade. Banks this week posted the highest level since April 19 though FMCG and oil & gas sectors came under some pressure.

On Friday, The market breadth was negative with advances at 574 against declines of 894 on the NSE. Top Nifty gainers were ICICI Bank, Mahindra & Mahindra and HUL while losers included Jindal Steel & Power, Sesa Goa and Maruti Suzuki.

Markets are expecting some positive news from the Govt. A clear trend is likely to emerge after the Presidential elections are completed.

Technical Analysis: Sensex shut shop at 17521, down 17 points and Nifty at 5316, down 10 points from the previous close. On the higher side 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: The markets are moving in an indecisive manner. Perhaps, the markets are awaiting some policy reforms from the Govt which may not happen till the Presidential elections are over. Till such time, markets may move in a narrow band. Keep booking profits at higher levels while lower levels may be utilized to buy quality stocks.