Market Scenario 08/08/12

The markets gained significantly on the second consecutive day with auto, IT, banking and realty leading the rally. Capital goods, FMCG and power, too, gained significantly while healthcare and oil & gas closed negative.

The market breadth was positive with advances at 785 against declines of 642 on the NSE. The top Nifty gainers were Tata Motors, IDFC, DLF and Ambuja Cements while losers included Cairn India, Hero Motor Corp, Power Grid and BPCL.

Markets seem to be gaining momentum and are positively biased on the upside.

Technical Analysis: The Sensex closed at 17602, up 189 points from its previous close, and the Nifty shut shop at 5337, up 54 points. On the higher side 5350 and 5400 are the strong resistance levels while on the lower side 5300 and 5250 are the strong support levels.

Suggested Strategy: Markets have turned the corner after a prolonged sideways movement. Markets are anticipating some favorable news from the Govt. Since, the Vice Presidential elections are out of the picture, the Govt may now come out with far reaching reforms. Markets are favorably poised for an upward movement.