Close: 14k breached?whats next !

Market started firm with a positive gap of 120 points. Sensex not only touched 14K mark but it is also the first time that the market was able to achieve 5 milestones in a year. Though market traded in the positive zone through out the day but some alternative bouts of profit booking was witnessed which shows the nervousness in the minds of the investors. Steel stocks traded firm while the news from the Buying was witnessed in index heavyweights across different sectors mostly in steel, software and petrochemicals while stocks from cement, FMCG and Telecom witnessed selling pressure. European markets are trading positive while asian markets ended mixed.

Crude was at US $ 62 down by $1.This happened despite the news that the oil supply is going to be further reduce the oil production by 5,00,000 to 10,00,000 bpd. Rupee was trading at Rs 44.57 a Dollar and it is further expected to go down.

Sensex ended 63 points up at 13937. It is helped up by gains in TISCO (492.9,+5 percent), RCVL (458.05,+3 percent), L & T (1462.25,+3 percent), RIL (1280,+2 percent) and Infosys (2239.05,+2 percent). Restricting the gains are Guj Ambuja (141.65,-2 percent), HDFC Bk (1083.65,-2 percent), HDFC (1604.1,-1 percent), Maruti (949.3,-1 percent) and Grasim (2753.3999,-1 percent).

Reliance industries is going to acquire Adani Retail, a retail major in Gujarat which has a top line of 200 Crores. Adani Retail has 54 stores across the state of all formats like neighborhood stores, supermarkets, Hypermarkets. The company is planning to expand and have another 65 stores by the year end. The valuations and the price is not disclosed. This will help reliance retail a lot as it will have access to ready made infrastructure and real estate to begin its operations in Gujarat. The stock ended the day up by 1.6%.

TATA's are planning to enter the refining Business. The group is close to buying around 25% of 1500 Crore equity base for Rs 400 Crores. The deal will be helpful for Nagarjuna Oil Corporation which is a subsidiary of Nagarjuna Fertilizers and Chemicals (NFCL) which holds 51% in the venture. The project was expected to start in 2002 but was not started due to the problems in the raising of funds. The group is also in talks with the Russian and Middle East companies for the funding of the remaining part of the Project.

Technically Speaking: Sensex touched intraday high of 14028 and low of13905. Market churned a good turnover of Rs 4748 cr. Overall breadth favored Advances. The Resistance level was at 14005-14078 while Support at 13882-13832 levels.