Market Scenario 13/08/12

After a range bound and lackluster week the market closed absolutely flat with some cuts seen in the midcap index. Action was more stock specific though the IT pack saw some good gains. Global cues were flat, too. This week's performance was average and the Sensex was up 2.2% while Nifty was up by 2.1%. whereas CNX Midcap index was down by 0.04%.

On last Friday, it was a subdued close to a dull session for the Indian market which saw banks, autos and realty trade under pressure. However, some buying was seen in IT, FMCG and oil & gas stocks in a range bound scenario.

The market breadth was negative with advances at 549 against declines of 878 on the NSE. Top Nifty gainers were BPCL, Maruti Suzuki, and Kotak Mahindra while losers included SBI, Tata Motors and Ranbaxy.

Markets are witnessing alternate bouts of buying and selling and clearly lacking direction. Trade lightly and make swift entry and exits.

Technical Analysis: Sensex closed at 17557, down 3 points and Nifty at 5320, down 2 points from the previous close. On the higher side Nifty 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the crucial support levels.

Suggested Strategy: Markets are moving in an extremely narrow band. Perhaps, markets are expecting some policy announcement from the Govt for making a breakout on the upside. It remains to be seen how the markets will pan out in the days to come. Buy on declines and sell on rallies should be the strategy.