Market Close: Liquidity outflow creates pressure..

Indices opened on Bullish tone and trading at higher levels taking global cues. Good buying in the morning led the market to trade at higher levels. Crude prices have come down little bit and US bond yields have also helped the market. Indices pared of its gains in mid-session as selling pressure intensified. IT stocks were in demand as the Rupee weakened against the Dollar. Reality stocks rallied as the news spread across the market that DLF IPO received good response. Small cap and Midcaps index slipped as Investors booked profits at higher levels. Market was fuelled by IT, Oil & Markting and FMCG sector, while Cement and Auto stocks were under pressure. After a strong start in the morning but selling pulled it down but heavyweight's like HDFC Bank, RIL, Hero Honda and Infosys supported the market to end up.

Sensex ends up by 20 points at 14083.41. It was helped up by gains in Hero Honda (698.9,+3 percent), ITC (153.9,+2 percent), Hindalco (160.95,+2 percent), Infosys (1980.1,+1 percent) and HDFC Bk (1099.1,+1 percent). Restricting the gains were RCVL (504.95,-2 percent), Grasim (2346.6001,-2 percent), SBI (1339.75,-1 percent), TISCO (579.75,-1 percent) and Dr Reddys (625.25,-1 percent).

Steel sectors ended in mixed bag. Steel Authority of India (SAIL) surged as it will partner Jaypee Associates (JAL) for a proposed 2 MT cement plant at Bokaro, Jharkhand. The two will form a JV where Jaypee would have a majority stake. This would be SAIL's second tie-up with Jaypee for a cement plant. The first JV was signed over two months back to set up a 2.5 MTPA capacity plant at Bhilai. The proposed cement plant at Bokaro would use the slag produced by the Bokaro Steel Plant of SAIL. According to the plan 1 MT of slag is likely to be supplied to the proposed cement unit annually. The implementation of the project would take three years. This foray into the cement sector would bring in additional revenue for SAIL as the slag a waste produced at its steel plants would be beneficially utilized. At present SAIL is selling the slag to cement companies but the move to get into the cement business on its own is likely to earn SAIL better margins. Sail ended the day up by 1.5%.

Energy sector ended firm. HPCL reported that it is in talks with France and Kuwait Petroleum International (KPI) to set up a new US$ 3 bn refinery at Vizag instead of expanding its existing plant. The state-run petroleum major has been in talks with Total, KPI and Oil India over taking a stake in a planned doubling of the capacity at its Vizag refinery for more than six months and had hoped to clinch a deal in April 2007. However the company is now in favour of a new Greenfield project at Vizag. The proposed refinery would have a capacity of at least 180,000 barrels per day. The refinery will be completed by 2011. HPCL is also considering setting up an aromatics petrochemical plant along with the refinery. HPCL ended up by 4.5% and all oil mjaors managed to end up. Crude slipped to trade below $66.

Technically Speaking: Market witnessed profit booking at every levels but shrugged of gains at the end. Sensex has closed near our support level of 14000--14030. A break below this will take us to 13815 which is another key support levels. On the upper side 14323 and 14452 are Resistance levels. Markets are still in Bull mode and longs to be avoided below 13800. Sensex touched intraday high of 14269 and low of 14058. Market turnover was pretty good at Rs 3484 Cr. Overall breadth was in favor of Advances, where the Advances stood at 1169 and Declines stood at 1141. We expect the market to be ranged and choppy for the rest of the week.