Market Scenario 17/08/12

The markets traded in a narrow range today and closed with moderate declines. FMCG, metal, consumer durables and banking were the biggest laggards in today's session while capital goods, oil & gas and auto gained significantly.

The market breadth was negative with advances at 645 against declines of 798 on the NSE. The top Nifty gainers were IDFC, Hero Motor Corp, Ranbaxy and M&M while losers included ITC, Sterlite Industries, Hindalco and Sesa Goa.

It is better to book profits on the higher side and pick up strong shares on market declines.

Technical Analysis: The Sensex closed at 17657, down 71 points from its previous close, and the Nifty shut shop at 5363, down 17 points. On the higher side Nifty 5400 and 5450 are the strong resistance levels while on the lower side 5350 and 5300 are the strong support levels.

Suggested Strategy: The markets have gained several points over the last few days. However, the markets are shaky on the higher side. It is better to book profits on the higher side while the lower side may be used to buy fundamentally strong shares.