Market Scenario 03/08/12

The markets traded range bound throughout the day and closed with moderate declines. Oil & gas, banking and auto were the biggest losers in today's session while consumer durables, power and capital goods gained significantly.

The market breadth was positive with advances at 789 against declines of 624 on the NSE. The top Nifty gainers were NTPC, BHEL, Axis Bank and SAIL while losers included Cairn India, Tata Motors, BPCL and Tata Power.

The markets have become listless and moving in a very narrow range. Keep booking profits at higher levels.

Technical Analysis: The Sensex closed at 17224, down 33 points from its previous close, and the Nifty shut shop at 5228, down 12 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 are moving in an indecisive manner and seem to be waiting for some positive trigger from the Govt. Markets may move in a narrow band till some policy reform measures are announced. Sell on rallies and buy on declines.