Market Close: Flat session with low volume

Less participation in the market as investors took out money resulting indices to trade ranged. Global markets too witnessing selling pressure but Asian indices managed to close in a mixed bag. European Central Bank reported that it has kept the interest rate unchanged while fueled buying in European markets which is trading up. Seletive midcaps and small caps along with few Index heavyweigths kept momentum on the indices. Banking, software and others traded mixed. European markets are trading firm while the Asian markets closed in mix.

Sensex ended up by 23 points at 13972.03. It is helped up by gains in Hindalco (183.4,+3 percent), NTPC (151.7,+2 percent), RIL (1300.75,+2 percent), Tata Motors (892.2,+1 percent) and HDFC Bk (1101.65,+1 percent). Restricting the gains are Hero Honda (749.85,-2 percent), HDFC (1565.55,-2 percent), RCVL (456.3,-1 percent), Bharti Tele (638.25,-1 percent) and ACC (1133.4,-1 percent).

The government's reluctance to raise ban on export of sugar along with bumper crop in the current harvest season has created negative sentiments on the sector outlook on the medium term basis. The output in the current season is expected to increase the inventories and lend pressure on margins. India's sugar output for the current season is seen at 23 milion tonne (MT), while the consumption is pegged at 19.5 MT. Sugar industry has planned significant capacity addition going forward, thus debt protection is going to deteriorate to an extent. And Govt is expected meet tomorrow to review about the Ban on exports. Sugar stocks have been witnessing weakness in medium terms if the ban is removed expect the good times to return here. Sugar stocks traded weak for the day.

Tata motors dream one lakh Rs car is facing problems regarding the land acquisition. The company has faced violent protests from the opposition parties in Bengal on this issue of agricultural land being sold for Industrial use but the issue seems to settling down as the Orissa government has asked the company to set up that plant in Gopalpur in Orissa where it already has vast streches of land under its possession. The state government is also interested in providing infrastructure facilities for the plant. As of nothing negative for the company as all auto stocks traded mixed.

Technically Speaking: Sensex touched 14k for second time but failed to sustain and made low of 13915. Market churned a turnover of Rs 3787cr. Overall the advance decline ration was 1:1. The Resistance level was at 14005-14047 while Support at 13918-13873 levels. Overal Market Volume was at its lowest in the year.