Close: Bulls and bear tussle continue

Trading session started with some profit booking and continued for while. But recovery was seen later. Ranged and choppy sessions continued. Liquidity outflow has been seen in last few days which kept sentiments under pressure. However some interest was seen in heavyweight particularly Maruti as the stake sale news by Govt. buzzed the market. The market is heading towards long weekend which may keep foreign fund flow lackluster. Telecom and Textiles counter remained strong while Tyre, Banking, Engineering and Media were mixed. Global markets continued to trade weak for the day. Expect market to trade range ahead as holiday mood may keep interest lacking.

Sensex is up by 45 points at 13384.86. It is helped up by gains in Tata Motors (865.05,+3 percent), RCVL (461.7,+3 percent), Rel Energy (524.3,+2 percent), Bajaj Auto (2559.05,+2 percent) and Satyam (465.8,+2 percent). Restricting the gains are Guj Ambuja (132.8,-1 percent), ONGC (852.25,-1 percent), HDFC Bk (1010.45,-1 percent), L & T (1399.15,-1 percent) and Ranbaxy (386,-1 percent).

Maruti continued its drive as Govt. said that it will divest it 10.2% stake in Maruti. This divestment would earn Govt. around Rs.28000crs. which would be used for funding infrastructure growth. Stake sale by Govt. for Maruti means do away with Govt. influence in the company. But the competition is stiff here and fight is for market share on the sake of margins. However company has increased prices in such stiff competition which is good move making us think over it once again. We will update you with more work on this one.

Reliance Communications flared up 3% on reports that it has put in a $16-17 bn (76500 cr) bid for Hutch-Essar. The company is really getting aggressive and that make us cautious. The company has been really doing well as it has acquired huge market share in short span of time. But now we would recommend to avoid this one.

India Bull announced that a leading international real estate consultancy Knight Frank has valued its real estate business at Rs.15,125 cr. The stock flared up as the company announced record date for demerging its real estate business. Property counter continues to remain hot.

Technically Speaking: Sensex move within the range of 13497-13598. Advance Decline ratio was almost at par. Support is at 13238-13080. Volumes were decent at 4050 cr. 13238 is major support. However market is headed upward and may touch 13500.

Performance was good for the day. DTP calls given two times on Nifty booked fantastic gains. Decent gains were made in Karnataka Bank and Indiainfoline while Naukri.