Market Scenario 16/08/12

The markets gained momentum in the latter half of the day and closed with moderate gains. Banking, oil & gas, metal and auto led the rally and consumer durables and capital goods, too, supported the indices well. Realty, healthcare and power closed negative.

The market breadth was positive with advances at 739 against declines of 693 on the NSE. The top Nifty gainers were Tata Motors, Ranbaxy, IDFC and Tata Steel while losers included Sun Pharma, HDFC, Hindalco and Sterlite Industries.

The markets seem to be expecting something positive from the Govt on policy reforms front. Perhaps, the markets are expecting news which the market men are not aware of. Till such time, keep your fingers crossed.

Technical Analysis: The Sensex closed at 17728, up 95 points from its previous close, and the Nifty shut shop at 5380, up 32 points. On the higher side 5400 is the strong resistance level while on the higher side 5350 is the strong support level.

Suggested Strategy: The markets have closed at the critical resistance level of 3380. Once, this crucial level is crossed, the next resistance level is 3400. If this crucial level is decisively crossed, the markets will be poised for an upward breakout. Observe closely this vital resistance level and take positions accordingly.