Market Close: Gains wiped off at the end

Market opened with significant gap up on the back of strong cues from Asian markets. After the morning session market turned to be bit lacklustre and ranged. There seems to be liquidity outflow from the system given the major IPO from ICICI Bank. However indices could hold on the gains and slipped into red during mid session. This sell off was led by selling in IT, Pharma, Auto and Consumer durable stocks. However, Banking, Cap goods and Oil & Gas indices managed to hold gains. Midcaps could not sustain and closed flat while the smallcap ended in red. Most of the Asia markets ended in green except Europe.

Sensex traded down by 83 points at 14080.14. Weighing on the Sensex were losses in Ranbaxy (359.25,-4 percent), Hero Honda (653.7,-4 percent), TISCO (588.95,-2 percent), HDFC Bk (1087.9,-2 percent) and TCS (1166.6,-2 percent). Losses were restricted by gains in ICICI Bk (917.85,+1 percent), ONGC (889.5,+1 percent), Hindalco (162.1,+0 percent), ACC (823.6,+0 percent) and ITC (152.9,+0 percent)

Software counter was mixed. Market reported that Cranes Software (Software products maker) is close to buy out the Bangalore-based anti-virus software maker Proland Software. The proprietary firm Proland Software has been in the business of designing, developing and supporting anti-virus software products for over 15 years. Proland has anti-virus offerings on almost every platform, namely Windows Vista, Windows XP, Windows 98, Windows 2000 and NetWare among others. Sold under the Protector Plus brand, Proland's anti-virus software products have users in over 100 countries. Proland derives about 65% of its revenues form the US market, while Europe was its second largest market. The stock runs up on the news which is inline with the business. Cranes Software ended up by 4.5% while its pears like Hexaware Technologies was up 2%.

It was a good listing day for Plastic packaging maker Glory Polyfilms which started the day at its issue price of Rs 48 and touched a high of Rs 84 in the trade. Strong support from buyers helped the stock to hold above Rs 60 till the end despite sluggish markets in the late mid trade. Glory Polyfilms expect FY09 topline at Rs 150 crore. They also expect operating profit margin and net profit margin at 20-22% and 10%, respectively. The company entered capital markets with around Rs40crs. The issue will be used to part finance the expansion of multlayer film, printing capacity and lamination film. Money will also be used for meeting the working capital margin requirements. The stock ended the day down by 2.5% on account of heavy selling pressure.

Technically Speaking: Market drifted to lower levels as selling pressure eroded the gains. Sensex touched intraday high of 14283 and days low of 14057. Resistance lies at 14360 levels and Support lies at 13860 levels. Overall breadth was in favor of Decliners, where the Declines were 1323 against 1237 Advancers. Market is expected to be ranged for the week.