Market Close: Third straight Gains.. After a Roller coaster ride..

Yet another day of Yoyo movement while the Indices ended in Green. Market began the day on a buoyant note despite periodic attempts of profit booking in index heavyweights. Global cues also supported the day. Capital goods, Power and Oil marketing companies marched ahead with LNT, REL and BHEL supporting the rally. In the mid session some gains were given up on account of selling pressure in Oil & Gas and IT stocks while Heavywieghts like REL, BHEL helped Indices to end in green and market also saw short covering during the final hours of trade. Smallcap index outperformed the frontline index. All Asian indices closed in green which supported the uptrend, while Europe is trading in red zone.

Sensex ended up by 87 points at 14499.24. It was helped up by gains in Rel Energy (560.4,+4 percent), L & T (2106.6001,+4 percent), BHEL (1481.7,+4 percent), Hindalco (166.85,+3 percent) and RCVL (517.15,+2 percent). Restricting the gains were Hero Honda (661.5,-1 percent), Satyam (466.8,-1 percent), Maruti (761.4,-1 percent), Bharti Tele (818.2,-1 percent) and ITC (154.4,0 percent).

Larsen & Toubro Ltd (L&T) announced that it has won another key contract for construction of two ships valued at over Rs 320 Cr (US$ 94.95 mn) from BigLift Shipping BV of the Netherlands a part of the Spliethoff Group. The order further establishes the entry of the Company's venture into shipbuilding last year. The vessels will be built at the existing shipyard that is a part of the Company's state-of-the-art engineering complex at Hazira, Surat. BigLift Shipping of Netherlands is a shipping Company that specializes in the worldwide transportation of heavy lifts. Production of the ships is scheduled to commence in June 2008 and the vessels shall be delivered by March 2010. The vessels will be able to carry all kinds if dry cargo as well as project cargoes and heavy lift in the most efficient manner. The vessels have a length of 154.8 m beam 26.5 m & 18680 t deadweight and shall be delivered in November 2009 and March 2010. The Company has entered this Ship building business in recent times and the compony received a huge order. The stock rallied over 4% for the day.

Engineering stocks traded mixed. Markets reported that Bharat Heavy Electrical Ltd (BHEL) intends to shore up annual capacity to manufacture power generation equipment. At present the company is geared to make power equipment for setting up plants with total generation capacity of 7000 MW per annum. BHEL proposes to supply equipment to help set up power stations with a combined generation capacity of 10500 MW. This will enable the company to supply relevant power equipment for setting up an additional 52,500 MW in the next five years. The stock ralled up by 4.2% on the outcome of the news.

Technically Speaking: It was a fairly choppy session but pulled back at the end trades. Sensex touched intraday high of 14526 levels and low of 14407 levels. Sensex has made an upward breakout and clearly headed uptrend with a gap support of 14440 level. The next Resistance can be seen at 14590 levels. Market turnover was very good at Rs 5277 Cr. Overall breadth was in favor of Advances, where the Advances were 1443 against the Declines of 1156. Expect the market to continue the uptrend momentum.