Market Close: Cautious steps ahead of Expiry

ood start for the week..!. Indices opened strong on the back of global cues. Markets lost some gains during the mid session of trade as investors choose to book profits at higher levels. Selective Buying iwas seen in Banking, Software and Engineering stocks while selling intensified in Power, FMCG and metal stocks. However, we are near the FNO expiry for the month. Investors are cautious in market as Uniion Budget is closing near. Asian markets ended mixed while European markets trading strong.

Sensex closed up by 47 points at 14402.9. It was helped up by gains in ICICI Bk (977.9,+3 percent), Maruti (914.1,+2 percent), TCS (1309.9,+2 percent), RIL (1418.25,+1 percent) and Bharti Tele (797.6,+1 percent). Restricting the gains were Hero Honda (717.2,-4 percent), Guj Ambuja (132.45,-3 percent), Hindalco (148.6,-2 percent), Rel Energy (535.7,-1 percent) and HDFC Bk (1032.8,-1 percent).

A leading business daily reported that Parsvnath Developers Ltd signed a MoU with Government of Gujarat for developing various projects at an investment of Rs 1600 cr over a period of 2-3 years. The company will develop townships, group housing, commercial complexes, IT Parks amongst others at Ahmedabad, Bhavnagar, Rajkot, Vadodra, Surat, Jamnagar and other districts in Gujarat. With this, Parsvnath Developers Ltd becomes a key player in committing large investments in Gujarat by way of real estate projects. Some projects are being implemented with immediate effect. Stock ended up by 2.2% with peers like Ansal Properties and Madhocon Project both closing up by 1.2%.

Power T&D equipment and services major, ABB India reported strong results for the fourth quarter and full year ended December 2006. For CY06, the company has reported a topline growth of 44% YoY. Also, EBDITA margins expanded by 50 basis points due to stock related adjustments and lower staff and other costs. Lower interest layout was spurt in the bottom-line which grew by 56% YoY. Strong growth from all segments was due to completion of project in time. The stock closed up 3% along with its peers Voltas (up 3%) and L&T (up 1%).

Technically Speaking: Market traded ranged in a narrow channel for the day. Sensex touched intraday high of 14479 and low of 14355. Market Volume was good at Rs 4204 cr. Overall breadth was in favor of advances as there were 1340 advances against 1300 declines. Nifty Futures is trading very near its crucial level of 4185. If it fails to cross this level then we might see much lower levels for the current expiry. Sensex Resistance lies at 14458-14522 levels while Support lies at 14350-14307 levels.