Market Scenario 14/08/12

Led by heavyweight counters like HDFC, the markets gained momentum in the last hour of trade and closed with moderate gains. Barring auto, all sectoral indices closed positive with realty, consumer durables, capital goods and power being the best performers. Oil & gas and banking, too, gained significantly.

The market breadth was positive with advances at 784 against declines of 652 on the NSE. The top Nifty gainers were HDFC, DLF, Reliance Infra and Sterlite Industries while losers included Hindalco, Tata Motors, Hero Motor Corp and HUL.

Markets after dilly dallying in the morning, moved up in the closing sessions. Markets are positively biased on the upside.

Technical Analysis: The Sensex closed at 17633, up 76 points from its previous close, and the Nifty shut shop at 5348, up 27 points. 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: The markets moved listless in the first half of the day, however during the second half of the session, the markets moved up signaling that the markets may break out on the upside. However, it is too early to predict the direction of the markets. However, the markets are biased on the upside.