Market Scenario 22/08/12

Yesterday was a good day of trade on Dalal Street as the Nifty managed to cross its resistance level of 5400 and gave a closing above it, for the first time since March 16. Banks, IT, cements and power stocks saw strong buying interest.

The market breadth was positive with advances at 798 against declines of 634 on the NSE. Top Nifty gainers were Sterlite Industries, DLF and Sesa Goa while losers included Bharti Airtel, Cairn India, and PNB.

Since, the markets have crossed the key 5400 level, markets may make a move on the upside.

Technical Analysis: Sensex shut shop at 17885, up 194 points and Nifty at 5421, up 54 points from the previous close. On the higher side 5450 and 5500 are the strong resistance levels while on the lower side 5400 and 5350 are the strong support levels.

Suggested Strategy: The markets have finally crossed the crucial 5400 level and the trend may take the markets further up. Going long would be in order. Try to bank upon large cap stocks.