Market Scenario 06/08/12

The markets gained significantly during the week with power, capital goods and realty leading the rally. Banking, too, supported the indices well. The Sensex was up 2.16% and Nifty gained 2.3% over the week. The top Nifty gainers during the week were NTPC, BHEL, Grasim, and CIPLA.

On last Friday, the markets traded range bound throughout the day and closed with moderate losses. Metal, auto and banking were the biggest losers in today's session and realty and FMCG, too, played their roles in pulling the indices down. IT, oil & gas and healthcare gained significantly.

The market breadth was negative with advances at 577 against declines of 849 on the NSE. The top Nifty gainers were Asian Paints, Wipro, NTPC, and ONGC while losers included Sterlite Industries, Jindal Steel, Tata Steel and IDFC.

Technical Analysis: The Sensex closed at 17198, down 26 points from its previous close, and the Nifty shut shop at 5216, down 12 points. On the higher side Nifty 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 closed flattish on reports of deficient rainfall this time around. The weak trend may remain for a few more sessions. Markets are awaiting some positive news to make a breakout on the upside. Trade lightly and swiftly. Caution should be the watch word.