Daily stock market strategy by money mantra.

Daily Market Strategy - 26 July 2011

Market Outlook 26 July 2011:

The markets gained momentum in the last 2 hours of trade and closed with significant gains. Largecap telecom counters led the rally and auto, metal and oil & gas also performed well. FMCG and IT closed marginally in the red. The Sensex closed at 18871, up 149 points from its previous close, and the Nifty shut shop at 5680, up 46 points. The CNX Midcap index was up 0.7% while the BSE Smallcap index gained 0.5% in today's trade. The market breadth was positive with advances at 765 against declines of 540 on the NSE. The top Nifty gainers were RCom, Bharti Airtel, Axis Bank and Mahindra & Mahindra while the biggest losers included Cipla, Sesa Goa, Power Grid and ITC.

Today market expected trade in positive range we recommend to buy nifty and banking stocks. As per technical research there is strong buying expected in banking and finance stocks but advised to cautious in Oil and Gas stocks in that stocks we can see profit booking at higher level.

Stock to Watch Today: As per market condition there are some stocks that show fresh momentum likeHDFC, BIOCON, SUNPHARMA, ONGC, PFC, HINDZINC, ONMOBILE and RCOM..

Nifty Strategies of the day: Nifty traded in the range given in previous days finally nifty spot closed at 5680 that is positive closing for nifty. Nifty continue sustain above 5650 technically strong signal for bull. For next session we advised to buy nifty at dips with stoploss around 5665. For Nifty our weekly view is cautious and we suppose high, for RBI Policy ahead. Nifty may be in between 5655 – 5710 and resistance may be at 5750 and crucial resistance may be at 5800 level, as discuss few days back we also mention nifty target 5700 and later on 5800. The support for the nifty may be at 5610 once break 5655 and key support in nifty around 5550.