Market rolls on ! Sensex breaches 13400

Market opened flat note on the back of weak global cues. But later inroads into the positive territory was on the back of buying in Index heavyweight. For the first time in history Sensex breached the 13400 mark. Market was mainly supported by large cap stocks like Bharti Airtel, HDFC, Zee and Gail. FMCG, Telecom and software sector rallied the market. Selective buying was seen in midcap and small cap stocks. Selling was witnessed in select metals, auto and engineering stocks. Asian Market ended in mix while European Market is trading firm.

Sensex closed up 116 points at 13399. It was helped up by gains in NTPC (137.95,+6 percent), HDFC (1555.45,+4 percent), Bharti Tele (565.1,+4 percent), RCVL (403.5,+3 percent) and Rel Energy (534.7,+3 percent). Restricting the gains are Hero Honda (715.15,-1 percent), Hindalco (181.9,-1 percent), TISCO (497.15,-1 percent), ONGC (871.1,-1 percent) and Ranbaxy (397.35,0 percent).

Talks of some sops for the utilities had NTPC up. HDFC was up on the back of buy notes in US on this Housing Finance Company as banks are finding it tough on their resources. Bharti Tele and Reliance Communication jumped on the back of record growth in users in GSM and CDMA. Reliance Energy had the reverberations of higher rates of usage for Mumbai city. Metals were down as expected on global slowdown fears.. but really the juggernaut is rolling on.

Zee Telefilms closed up 3%. The company has acquired a 50% stake in the Dubai based sports channel Ten Sports for a consideration of Rs 256.5 cr. This strategic movement by Zee states the company's seriousness and belief in the genre of sports broadcasting. The Company has also won bid for all rights to the ICC cricket world cups and tournaments for the next eight years. Zee as off now seems to be the strong player. The fundamentals are strong and with more acquisition the company is playing a big gamble. However the risk is now increased given the increased risk that the company is taking.

As per a leading business daily, Aditya Birla Group flagship company Grasim Industries has signed a memorandum of understanding (MoU) with the Orissa government to set up a cement facility in the state with an investment outlay of Rs 12 bn. The unit will have a production capacity of 3.5 million tonne (MT) a year and a 50 MW power plant, to be commissioned in three years. The expansion intends to meet the demand and supply mismatch in this sector. This expansion will have a long gestation period. However Cement is the good story with better realization and strong growth. So one can invest in this stock with a long term perspective. The stock was marginally up

Reliance Industries, whose fuel retail business took a hit after it hiked rates early this year, has reduced the sale price of petrol and diesel by Rs 2.50 per litre to bring it on par with prices of petro products sold by public sector undertakings. The sale of the petroleum products of RIL have reduced by 90 per cent after the increase in April and may this year. From an average 20,000 litres sale per day it has come down to less than 2,000 litres per day after the increase. RIL has a little over 1,200 fuel retail outlets in the country. Smart move by Reliance in order to maintain profits and now that crude is down again, its back to selling at price at par for the Government owned retailing companies. Reliance at this time prices in lot of positives of SEZ and Retailing already. All new funds coming into the country will necessarily be buyers here. But really as a standalone we are not buyers because earnings predictability is low and cash will be utilised in the new businesses which has increased the risk profile.

Technically Speaking: Market traded firm. The resistance lies at 13491-13451 while supports lies at13328-13246. The volume was good at 3925cr. The breadth has been in favor of Advance, advance was 1445, while decline was 1093. The Market made a high of 13410 and Low of 13287. Expect the market to continue to trade firm.

Performance was good for the day. The BTST call on orchid delivered good gains. The BTST call on Bharti was closed on the same day even this call delivered good returns. There was a couple of good sell calls on VSNL, Reliance. The Sell call on SBI made a marginal loss of 1 Rupee. The Intraday call on Ceat made good profits. Marvelous gain of 10% was made in Tantia. There were calls on Premier Tyres in quickies and Veejay Lakshmi in wow calls..The overall gains were superb for the day. Do read our Track records and subscribe for wow calls, Quickies, Delivery Delights, Day Traders Paradise and BTST calls.