Market Scenario 02/08/12

The markets closed with moderate gains today with healthcare, capital goods and realty being the biggest gainers. Metal and oil & gas closed with significant losses.

The market breadth was positive with advances at 947 against declines of 490 on the NSE. The top Nifty gainers were Cipla, Kotak Mahindra Bank, Ambuja Cements and JP Associates while losers included Coal India, ONGC, Sesa Goa and Hero Motor Corp.

Markets are awaiting some positive action from the Govt. Till such time; markets are likely to move in a narrow range.

Technical Analysis: The Sensex closed at 17257, up 21 points from its previous close, and the Nifty shut shop at 5240, up 11 points. On the higher side 5250 and 5300 are the strong resistance levels while on the lower side 5200 and 5150 are the strong support levels.

Suggested Strategy: The markets have once again turned listless moving in a very narrow band. Markets are expecting some concrete action from the Govt. However, till Vice Presidential elections are over, no major policy action may be forthcoming form the Govt side. Hence, markets may witness alternate bouts of buying and selling. Trade light and be nimble footed.