Close: Ranged action..as markets look for direction !

Indian Indices displayed ranged action for the day but it closed in red. Selling was seen in some index heavy weights whereas others saw recovery. Selective Mid and Small Caps saw action as is the case ahead of results season. Sectors like Metals, Auto Ancillary, Banks (PSU), Power and Fertilizer came in for profit taking. Cement stocks were the gainers on the back of some superb results by some small companies. Asian Markets ended mixed and European Markets too are showing ranged action.

Sensex closed down by 15 points at 14114.73. Weighing on the Sensex were losses in HDFC (1559.9,-2 percent), Hindalco (169.95,-1 percent), RIL (1347,-1 percent), Infosys (2217,-1 percent) and SBI (1209.25,-1 percent). Losses were restricted by gains in BHEL (2258.7,+2 percent), ACC (1101.4,+2 percent), Wipro (636.85,+2 percent), L & T (1520.25,+1 percent) and Bharti Tele (670.45,+1 percent).

The Bank of Japan is set to decide on interest rates over the next two days. A hike will be taken negatively. Today the banks saw some selling pressure. The news came later. The Government has hiked the ECB ( external commercial borrowing) limit from $ 18 bn to $ 22 bn. This means that corporates will find it easier to raise resources globally. This is bad news for the Indian Banks which are still facing a resource crunch.

Hyundai Motors has slashed the price of its compact hatchback Getz by Rs 21,000 to Rs 399,000 bringing it in line with Maruti's Swift and General Motor India's Chevrolet U-VA. The Getz was originally launched in 2004 at Rs 450,000 for the base model. Hyundai's move is aimed at working up the Getz's volumes which have failed to go past the 1,500-unit-a-month mark, while the Swift launched later in 2005 sells nearly 5,000 units a month. To boost Getz sales, Hyundai is also planning to launch a diesel version by the end of this calendar year while rival Maruti will launch the diesel Swift by the end of this month. The compact segment is seeing the competition increase. We are positive on Maruti with its expansions expected to kick in and the fact that this Swift Diesel will be the serious attempt by Maruti to get into the Diesel segment. However for now the cut in Prices by competition will put pressure. Stock closed marginally up and its peer Tata Motors also closed up by 1.2%.

Rajesh Exports announced that it has set up the world's largest jewellery manufacturing facility at Whitefield, Bangalore. The company plans to launch it's own retail stores across India. The stores are being launched under the brand name of 'Laabh Jewellers', which would carry Indian jewellery of the highest design consistency, absolute guarantee in terms of gold purity and at a fair and an affordable price. The company has developed an exclusive range of 3,000 individual jewellery designs. This exclusive range is now available at `LAABH` stores. `Laabh` is set to unvei its national presence in 23 cities across India. It is India`s single largest simultaneous launch of jewellery stores across the country. `Laabh Jewellery` started 30 exclusive jewellery stores in 23 cities across the country. In the first phase `Laabh Jewellers` has been launched mainly in the state capitals with presence in most of the major states of the country. It would be subsequently expanding its presence in the tier II cities in the next round of expansion. `Laabh Jewellers` would also be upgrading its product line in the near future by introducing gold coins and diamond studded jewellery. There would also be constant scientific up gradation of the existing gold jewellery line on a monthly basis. The stock was locked at 5% upper circuit.

The most expected result for the day; Bajaj Auto declared good results for Q3 with Net Profit at Rs 345 cr up by 23% and sales at Rs 2568 cr up by 27%. The market share increased to 35% from 30%. The stock made an intraday high of Rs 2850 and closed marginally up for the day. It was however volatile post the results as the mood remained unsure whether the performance warranted a run up. The competitive pressures are high. Expect a research note on this tomorrow. Bajaj is our best bet in the two wheeler sector. However we believe that opportunities will be available at lower levels given the competitive scenario as the biggies battle it out for the consumers pocket.

Technically Speaking: It was a choppy session for the whole day before closing. Sensex touched intraday high of 14211 and low of 14070. Market turnover stood good at Rs 3976 cr. Overall breadth was almost same where advancers stood at 1334 and Decliners at 1321. The Resistance level was at 14190 -14271 while Support at 14050 -13990 levels.