Close: Profit selling continues..!

Moving away from the trend seen yesterday the market opened on strong positive note with global cues being positive. Sensex moved swiftly in the early hours of trade but then profit booking was seen across the day. Markets traded ranged ahead of the FNO expiry and ended in green but flat. Cement stocks played vital role helped by the announcement of cut in diesel prices, Sensex closed in positive territory. Apart from cement, buying was seen in sectors like Chemicals, and Tyres. Heavy Buying was seen in Small Caps. Asian markets ended strong while European markets are trading firmly in the positive territory.

Sensex ended up by 15 points at 13616.73. It was helped up by gains in ACC (1146,+4 percent), Grasim (2789.8501,+3 percent), ITC (184.15,+2 percent), Guj Ambuja (146.15,+2 percent) and Dr Reddys (734.65,+2 percent). Restricting the gains were Cipla (248.95,-3 percent), ONGC (856.5,-1 percent), Bharti Tele (621.1,-1 percent), BHEL (2474.3,-1 percent) and NTPC (148.8,-1 percent).

It was however a day for the mid caps. The advance decline was 2 shares advancing for 1 declining. Interest is shifting towards value. Some more gains possible on cards.

Steel prices are expected to soften going forward as news have been making rounds that steel companies are likely to cut prices in December. Depending upon various categories the reduction would be in the range of Rs 500 to Rs 800 per ton. There has been a plunge in international prices of steel and due that the difference between the domestic and the international price is currently around US$ 30 to US$ 40 per ton. Besides shortages of steel in the global markets are reducing as the availability of steel has increased in the domestic market. Steel Authority traded firm.. Tisco was weak.

OVL (ONGC Videsh) the overseas arm of state-run Oil and Natural Gas Corp (ONGC) has won an oil exploration block in Brazil. OVL paid $6,80,000 for the offshore S-M-1103 block in the Santos basin. (S-M-1103) has potential for natural gas and light oil. The company was among the host of global energy giants that were awarded six blocks in Brazil's eighth annual auction of oil and gas concessions. OVL has started producing 4 MT of oil out of which 3 MT coming from its Sudan block. The company has 25 properties spread across 14 countries. It will be beneficial it will increase the share of OVL in the overall production levels of the group. ONGC ended lower by 1% on the back of cut in fuel prices. The subsidy will continue to bog this one down.

Technically Speaking: Market was ranged as it started positive and rallied between the channel of 13711 - 13586 level. Volumes were good at 4388 cr. However, the breadth had been in the favor of Advances as they were 1.77 times the Decliners. The Resistance lies at 13760 - 13683 while Support at 13558 -13509 levels.