Market Scenario 01/08/12

The markets made a smart recovery in the afternoon to close with moderate gains and barring consumer durables, banking and power, all sectoral indices closed positive. Oil & gas, realty and metal were the biggest gainers in today's session and IT and healthcare, too, gained significantly.

The market breadth was positive with advances at 741 against declines of 657 on the NSE. The top Nifty gainers were Grasim, ONGC, DLF, and Sterlite Industries while losers included Bharti Airtel, Bank of Baroda, Hero Motor Corp and Jindal Steel.

The markets have temporarily turned the corner and are likely to go up in the coming few sessions.

Technical Analysis: The Sensex closed at 17236, up 92 points from its previous close, and the Nifty shut shop at 5229, up 29 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 responded favorably to global news and greeted the news positively. Since the RBI was policy on expected lines, the news was already discounted by the markets. The markets may move upwards for the next few sessions.