Close: Looking for direction !

Market started on a positive note but that was short lived. The indices did not sustain the momentum as investors preferred to book profits and had the markets in negative. Liquidity is expected to be an issue near term. March 15th is the last date for the advance tax. The outflows are estimated to be in the range of Rs 30,000-40,000 crore. There was value buying at low levels which helped markets regain some momentum before ending in positive territory. Sectors like Sugar, Cement and IT saw buying interest. On the other hand, Telecom and Banking pivotal were under some pressure. It was the Real estate sector which saw a pull back from oversold zone. This was helped by some clarity on the SEZ policy though details are awaited. Small and Mid caps ended higher. Global cues were not supportive as Asian Indices ended red while Europe too traded weak.

Sensex closed up by 80 points at 12982.98. It was helped up by gains in Satyam (452.15,+2 percent), TCS (1264.5,+2 percent), Grasim (2053.8999,+2 percent), TISCO (444.5,+2 percent) and ONGC (807.25,+2 percent). Restricting the gains were HLL (181.2,-2 percent), Rel Energy (465.9,-2 percent), Ranbaxy (320.65,-1 percent), Bharti Tele (765.2,-1 percent) and Infosys (2105.6499,0 percent)

FIIs continue to be buyers. They were buyers of over Rs 200 cr for Monday as reported by Sebi where as MFs were sellers. Provisional FII numbers were flat and really that leaves the markets looking for direction.

Havell's Group reported that its subsidiary company in Netherlands has acquired Europe's most popular company, Sylvania headquartered in Frankfurt Germany for US $ 300 million in an all cash deal. Sylvania is one of the largest lighting companies globally with an annual sales turnover of almost US $ 600 million. Sylvania's 10 manufacturing plants located across Europe, Latin America and Africa would now come under Havell's ambit. Havells also said that the acquisition is expected to be financed with non-recourse debt facilities of $160 million and recourse facilities of $105 million. Post-acquisition, nearly two-third of Havell's consolidated revenue would accrue from the international markets. Stock ended up 6%. Indian companies are taking big risks and they can afford to do that. Its the benefits of lower costs which helps them do this.

Jet Airways announced that it would add another direct flight to London from next month. Jet will fly two non-stop flights per week to London from Ahmedabad from April initially and then fly three flights a week from May. An Airbus A330-200 aircraft will be operated on this route. The airline already flies three direct flights from Mumbai, New Delhi and Amritsar to the British capital. The move is a part of Jet's strategy to tap the international and trans-continental routes in the face of increasing competition in the domestic sector from more and more low-cost carriers. Jet already operates flights to South Asia, Singapore, Thailand and Malaysia and plans to add new routes in North America, Europe, Africa and other Asian cities in the near future. All the major airlines in the country are making losses at present. The infrastructure needed to support the increased traffic in lacking. The change in Govt policy regarding increase of landing charges during peak hours may be helpful to airlines like Jet. THe Aviation sector is best avoided at moment. Jet ended lower by 2% for the day despite lower crude prices.

Technically Speaking: Markets traded ranged with an intra day high of 13,026 and a low of 12,817 levels. Advances out numbered Declines for the day in the ratio of 2 :1. Volume for the day stood at Rs. 4,177 cr. Resistance is seen at 13059 and 13147 levels while Supports are at 12850 and 12729 levels. Sensex seems to be moving in a triangle. A move above 13100 should give a good rally. On the lower side support is at 12790.