Market Scenario 07/08/12

Led by Reliance Industries, the markets gained significantly today and barring FMCG and IT, all sectoral indices closed positive. Strong US job data, too, played its role in pulling the indices up. Oil & gas, auto, banking and capital goods were the biggest gainers in today's session and realty and metal, too, supported the indices well.

The market breadth was positive with advances at 903 against declines of 543 on the NSE. The top Nifty gainers were led by Reliance Industries, Tata Motors, JP Associates, and GAIL while losers included BPCL, Wipro, Dr Reddys and TCS.

Markets have received the much needed push from Reliance Industries. However, some policy reforms are needed for making that decisive move upwards.

Technical Analysis: The Sensex closed at 17413, up 215 points from its previous close, and the Nifty shut shop at 5283, up 67 points. On the higher side 5300 and 5350 are the strong resistance levels while on the lower side 5250 and 5200 are the strong support levels.

Suggested Strategy: The markets received a tremendous push from Reliance Industries following likely settlement on the KG Gas Basin. Reliance is expected to move further may be after a small correction. However, markets are awaiting some policy reforms from the Govt for making a decisive break out on the upside.