Market Scenario 09/08/12

It was a volatile session in the markets today with both benchmark indices closing flat after hovering both ways. Realty, banking and capital goods were the biggest losers in today's session while auto and metal closed with significant gains.

The market breadth was negative with advances at 582 against declines of 873 on the NSE. The top Nifty gainers were M&M, BPCL, Hindalco and Grasim while losers included Bharti, GAIL, DLF and PNB.

Markets are moving in a zig zag fashion with alternate bouts of ups and downs. The markets have once again become indecisive. Wait and watch for news flow tomorrow and take positions accordingly.

Technical Analysis: The Sensex closed at 17601, down 1 point from its previous close, and the Nifty shut shop at 5338, up 1 point. On the higher side Nifty 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: Contrary to expectations, the markets opened on a mildly positive note. Soon, the markets gathered strength and crossed the 5300 markets. However, at the fag end of the end, the markets gained a mere one point closing flattish. The market sentiment was affected owing to none too encouraging news flow. Wait for the markets to cross the 5350 mark decisively to take positions on the upside.