Market Scenario 24/08/12

The markets started on a sedate note to touch day’s high of 5448.20. The markets have been -moving in a highly volatile way to close the day with Nifty closing at 5415.35 - a gain of 2.50 points.

The market breadth was positive with the gainers including Cairn, Ranbaxy, TCS, Wipro and Hind Unilever while losers included Reliance Infra, Reliance, M&M, Power Grid and L&T.

Perhaps, markets are expecting some positive announcements from the Govt in the days to come. In the meanwhile, the global liquidity has been the driving force behind the current strength in the markets.

Technical Analysis: The Nifty touched a high of 5415.35 gaining a modest 2.5 points over previous day. 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 are moving in an extremely narrow range. The markets are waiting for some policy reform from the Govt. Till such time, markets may move in a narrow band. Buy on declines should be the strategy.